Inspiring Innovation & Excellence

RadiantREIT will be the first-ever investment trust to bring mortgage REITs to the solar energy market. By financing solar like real estate, RadiantREIT is able to offer long-term, fixed rate debt that matches the operational life of an asset, and a lower cost of capital.

For solar developers, RadiantREIT increases developers’ project cash flows, allowing them to maintain ownership in their projects.

For solar asset portfolio owners, RadiantREIT allows owners to swap out high-cost tax equity and short-term debt from project capital stacks with lower cost and longer-term loans.

The mortgage REIT model applied to solar is also attractive for the investor community, particularly for ESG funds looking to increase their impact while maintaining a diverse, liquid portfolio that includes long-term, predictable income streams from solar energy assets.

Market Opportunity

Solar represents a large and growing market

  • The U.S. solar market continues strong growth year after year despite all obstacles.
  • Projected investment in new solar installations in 2019: $17.9 billion.
  • The annual addressable market opportunity for solar project refinancing is expected to range from approximately $3 to $7 billion per year during the 2019 to 2025 period, based on 40 to 60 percent leverage as a percentage of total capital.

Sources: Bloomberg New Energy Finance, “1H 2018 U.S. Renewable Energy Market Outlook” (Solar Installation & Capex forecast); Bloomberg New Energy Finance, “Tax Equity Update: 2017” (Tax Equity Demand forecast); Wood Mackenzie/SEIA U.S. solar market insight®. “U.S. PV Installation Forecast, 2010-2023E”.

About Solar Mortgage REITS

Real estate investment trusts are widely deployed and proven in the real estate industry. When used for the solar market, solar mortgage REITs can lower the cost of capital for projects, increasing the net operating income of a project to ensure positive cash flows over the lifetime of a solar project. Ultimately, solar mortgage REITs provide developers with the option to maintain ownership of a project.

The Real Estate Investment Trust (REIT) model has often been discussed within the solar industry, but the conversation has typically focused on equity REITs, in which revenue is generated from the rents of property owned by the REIT.

The solar mortgage REIT, in which revenue is generated from interest payments on loans backed by the real estate portion of the solar project, helps solar developers fully realize the benefit of the Real Estate Investment Trust (REIT) model. The solar mortgage REIT also has the benefit of maintaining the solar tax credit while allowing for debt repayment schedules that are aligned with the life of the asset.

This model is also attractive for the investor community, particularly for ESG funds looking to increase their impact while maintaining a diverse, liquid portfolio that includes long-term, predictable income streams from solar energy assets.

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