Financing provider Renovate America and 400 Capital Management have announced the completion of their second securitization of residential Property Assessed Clean Energy (PACE) bonds, issuing $129 million in notes. These bonds have been rated AA by the Kroll Bond Rating Agency.
Renovate America partners with municipalities to provide financing to homeowners through California's HERO program for a variety of energy and water efficiency projects, including solar PV.
200 cities and counties participate in California's HERO program, making it the largest in the nation. GTM Research estimates that the program will provide loans for 33 MW of PV systems in 2014, to represent 5% of the state's residential solar market.
The securitization of assets is a tool used in the mortgage industry, and has recently been a means to bring more low-cost capital into the solar industry. SolarCity completed the first securitization of solar assets in November 2013.
This content is protected by copyright and may not be reused. If you want to cooperate with us and would like to reuse some of our content, please contact: firstname.lastname@example.org.