• RE Royalties

Solar Flow-Through - Rooftop Solar Portfolio

Updated: Apr 6

Capacity: 15.7 MW

Location: Ontario

Operational: 2016-2017

Estimated Annual Generation: 17.5 GWh

Total Projects: 49


Background:

Solar Flow-Through Funds ("SFT") is a developer of solar PV facilities in Canada, with offices in both Vancouver and Toronto. SFT provides accredited Canadian investors with an investment vehicle based on the flow-through financing concept.


The unique flow-through ability of their funds provides investors with favourable income tax benefits during the development phase of the projects followed by steady income once operational.

Funds they raise are then invested in solar power projects that have been qualified under Ontario’s Independent Electricity System Operator (“IESO”)Feed-In Tariff (“FIT”) program.




The Problem:

At the time, SFT had a portfolio of 49 operational roof-top solar projects in Ontario with a generation capacity of 15.7 MW DC. All of the 49 operational projects have 20-year fixed-price FIT contracts with IESO, a crown corporation owned by the government of Ontario. In addition, they also had several projects in various stages of development.


In order to maintain a strict construction schedule on some of these development projects, SFT required some additional funding while they finished securing a long-term debt financing facility with another lender.




Our Solution:


This is a great example of how the 'loan and royalty' product offered by RE Royalties helped one of our clients.


We provided SFT with a $5 million interest-bearing loan for 1 year that allowed them to maintain their construction schedule and ultimately secure the long-term debt financing facility with another lender. As part of the transaction, in addition to interest and principal payments on the loan, RE Royalties also receives royalty payments from the 49 operational solar projects for the remainder of the FIT term.


Learn more about Solar Flow-Through here:


Interview with CEO: RE Royalties' interview with Matt Wayrynen

Website: www.solarflowthrough.com

Social Media: Linkedin - Solar Flow-Through LPs


RE Royalties' royalty financing solutions are designed to provide renewable energy operators and developers with the financial flexibility to grow without resorting to dilution, asset sales or restrictive debt covenants. Learn more about our project financing options here.



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