Empower Energies (“Empower” or the “Company”), a leading clean energy project solutions company, and WGL Energy Systems, which operates distributed generation systems in 19 states and the District of Columbia, today announced that they have launched a Distributed Generation Fund (DG Fund) for photovoltaic (PV) solar projects, together with a leading global strategic tax equity investor.
With a two-year funding commitment, Empower and WGL Energy Systems plan to originate, develop, construct and manage rooftop, ground mount, and canopy PV solar projects through the DG Fund for commercial and industrial (C&I) customers, municipalities, universities, schools and hospitals.
“We are pleased to announce the launch of our Distributed Generation Fund and our partnership with two leading strategic investors, one contributing tax equity and the other project equity and energy infrastructure management expertise,” said John Clapp, Chief Financial Officer, Empower Energies. “The DG Fund gives us immediate access to tax equity at a time when availability is an issue in the marketplace. In addition, we are able to provide construction financing and development capital for our own projects and for those of other developers looking for a financing solution. The fund structure is well-suited to the distributed generation space. We can invest in projects in Solar Renewable Energy Credit (SREC) and non-SREC markets, as well as across the off-taker credit spectrum.”
The DG Fund enhances Empower’s ability to provide customers with The Right Mix™ of financing for solar solutions that deliver on an organization’s profitability, resiliency, and sustainability objectives.
“We are excited to partner with Empower Energies and to support solar development efforts in the United States,” said Sanjiv Mahan, president, WGL Energy. “The DG Fund is a reflection of WGL’s commitment to providing renewable energy answers, and the opportunity we continue to see in this rapidly-growing sector.”
The DG Fund enables Empower to offer a complete ‘capital stack,’ including development capital, construction finance, and project buy-outs at different points during the development process, depending on the needs of the co-developer. The DG Fund also creates efficiencies for customers, simplifying the project approval process, and enabling a single point of decision, accelerating development.
Empower Energies is currently seeking high-quality PV solar project opportunities (rooftop, ground mount or canopy) for the DG Fund to augment its own project pipeline. Empower currently operates in most major solar markets across the United States.
“The rapid, ongoing transformation of our clean energy industry landscape requires a high degree of strategic innovation and financial acumen,” said Len Jornlin, Chief Executive Officer, Empower Energies. “The closing of the DG Fund demonstrates the confidence our Fund partners have in Empower Energies, as well as our ability to raise the financing and tax equity necessary for us to deliver multi-faceted value for customers throughout the dynamic C&I marketplace.”
Empower retained Marathon Capital as its financial advisor to structure and raise equity for the DG Fund, as well as corporate equity.