SolarCity closes on $188 million worth of tax equity financing


Yesterday SolarCity announced that it has closed on a $188 million financing of residential solar projects through its renewable energy tax equity program with Bank of America Merrill Lynch and another un-named investor.

This is the second financing between SolarCity and the two investors through this program, which Bank of America says is part of its 10-year, $125 billion initiative to advance low-carbon energy sources globally.

This also follows on the close of a $150 million financing facility with Credit Suisse a day prior. Last week the company closed on a solar renewable energy credit (SREC) transaction that will provide up to $40 million in funding for distributed solar projects.

SolarCity has led in innovative financing for solar deployment, including closing on the first securitizations of distributed solar assets. However, even for SolarCity it is remarkable that in less than a week the company has raised nearly $400 million dollars through three different types of funds.

Project-specific funding for distributed solar has been one of the bright spots in solar financing this year. The first quarter of 2016 was marked by a crash in debt and particularly public market financing for solar companies, as stock values remain depressed.