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Sunpin Solar Closes Tax Equity Financing with Morgan Stanley Renewables Inc. for 98MWdc Solar Project in California

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Irvine, CA (December 29, 2020)

California-based developer Sunpin Holdings, LLC (“Sunpin”) announced today the closing of a tax equity financing with Morgan Stanley Renewables Inc. The investment is being used to finance the 98 MWdc Titan Solar 1 solar facility located in Imperial County, California that achieved Commercial Operation in mid-December 2020.

“This financing enables Sunpin to efficiently provide clean energy to 34,000 customers in Southern California,” said Kelly Lloyd, CFO of Sunpin. “We would like to thank the Morgan Stanley Team for the successful closing of this milestone tax equity investment and for their trust in Sunpin.”  

“We are proud to partner with Sunpin as we continue to diversify our investments in clean, renewable energy sources across the U.S.” said Jorge Iragorri, Managing Director at Morgan Stanley.

About Sunpin Holdings, LLC:

Sunpin, established in 2012, is a leading owner-operator and developer of utility scale solar projects across the United States. Headquartered in Irvine, California, Sunpin has regional offices in Illinois, Maryland, Massachusetts, New York, Ohio, Pennsylvania, and Texas. Sunpin has more than 1GWp of solar projects under development and more than 200 MWp in operation across the United States. For more information about Sunpin, please visit www.sunpinsolar.us.

About Morgan Stanley:

Morgan Stanley is a leading global financial services firm providing investment banking, securities, wealth management and investment management services. With offices in 41 countries, the Firm’s employees serve clients worldwide including corporations, governments, institutions and individuals. For more information about Morgan Stanley, please visit www.morganstanley.com.

Irvine, CA (Dec 22nd, 2020) – Sunpin Solar, a leading developer of commercial and utility-scale solar and energy storage projects, today announced that it has closed a senior secured revolving loan facility (the “Facility”) for up to $50 million with Crayhill Capital Management LP (“Crayhill”), a New York-based private credit manager and asset-based lender with a strong focus on Environmental, Social and Governance (ESG) investments.

The Facility will be backed by late-stage utility-scale solar projects under development by Sunpin Solar. The Facility is designed to finance capital expenditures required by projects prior to construction, including power purchase agreement deposits, interconnection deposits and engineering, procurement, and construction deposits. Sunpin Solar has more than 1GWp of solar and solar-plus-storage projects under development and has successfully developed, constructed and delivered several projects, including two recent projects in California of approximately 100 MWp each that provide renewable power to Direct Energy LP and another large retail energy provider.

“The capital solution provided by Crayhill will allow us to build and monetize our existing development pipeline and accelerate our growth,” said XJ Chen, Sunpin Solar’s Vice President of Development. “We appreciate the trust the Crayhill team has placed in us and look forward to building a successful partnership to deliver reliable green energy and reduce global carbon emissions.”

“Crayhill is excited to partner with Sunpin Solar and support their financing needs as they focus on scaling their business of developing and delivering high-quality solar power projects into the deep and expanding clean energy markets,” said Josh Eaton, Managing Partner of Crayhill Capital. “Despite the challenges created by the ongoing pandemic, demand for solar assets and green power remains strong. Sunpin Solar’s management team has deep experience, technical expertise and industry relationships that will enable them to successfully build on their position as a leading utility-scale solar developer.”

About Sunpin Solar

Sunpin Solar, established in 2012, is a leading commercial and utility-scale solar and energy storage developer in the United States. Headquartered in Irvine, California, Sunpin Solar has regional offices in Illinois, Maryland, Massachusetts, New York, Ohio, Pennsylvania, and Texas. As of November 2020, Sunpin Solar has more than 1GWp of solar projects under development and more than 200 MWp in operation across the United States. www.sunpinsolar.us

 

About Crayhill Capital Management

Crayhill Capital Management LP is a New York-based alternative asset management firm that specializes in asset-based private credit opportunities. The firm was launched in August 2015 and is registered with the U.S. SEC as an investment adviser. Crayhill strives to deliver capital solutions through tailored financing structures. Its asset-based investment strategies draw on deep sector expertise and relationships throughout the structured finance and specialty finance markets. For more information please visit www.crayhill.com or email info@crayhill.com.

 

Crayhill Capital Management Media Contact:                    Sunpin Solar Media Contact:

Zach Kouwe/Shree Dhond                                                     Tessa Wheeler

Dukas Linden Public Relations                                               215-805-7832

646-808-3665                                                                         twheeler@sunpinsolar.us

crayhill@dlpr.com                                                                       

Sunpin Solar, a California-based solar developer, announced a renewable energy power purchase agreement (PPA) with an investment grade offtaker for the full output of the Titan Solar 1 Power Plant, which began construction in January 2020. The renewable energy PPA covers the full 98-MWdc/70-MWac capacity of the solar project and will serve to meet California’s renewable portfolio standard requirements once it has reached commercial operation at the end of this year.

Sunpin Solar has signed a 70-MWac Power Purchase Agreement with an investment grade offtaker. The energy will be generated from Sunpin’s 98-MWdc Titan Solar 1 Power Plant in Imperial County, California.

 

Sunpin Solar’s CFO Kelly Lloyd stated “the signing of the PPA along with the tax equity investment and energy hedge commitments has propelled Titan Solar 1 into a utility scale desert solar diamond project that Sunpin is proud to develop and complete with its business partners and local community”.

The 98-MWdc Titan Solar 1 Power Plant, which will be operational in November this year, is situated on 420 acres of land in Imperial County, California, between the Salton Sea and the Anza Borrego Desert State Park. It is interconnected to the Imperial Irrigation District (IID) Utility grid and has delivery capability into the California Independent System Operator (CAISO) territory. The single-axis tracking system has an expected annual production of over 214,000 MWh.

This is Sunpin Solar’s second utility-scale solar project in IID, following the successful completion of operation of the 75-MWac ColGreen North Shore project in 2018. In addition to these two projects Sunpin also has a portfolio of additional solar plus storage projects under development in IID and Imperial County.

“The project would not have moved forward as smoothly as now without the tremendous support from the Imperial Irrigation District Board of Directors and staff as well as the County of Imperial, especially under such a challenging time due to COVID-19. Sunpin is committed to generating more tax revenues, creating more jobs and bringing more local benefits to the community.” Said XJ Chen, Vice President of Development at Sunpin.

The Titan Solar 1 project created over 300 local jobs at the peak of construction, even during the COVID-19 pandemic. There has been a cohesive effort to complete the project on schedule while keeping its workers safe.

The project is expected to provide annual environmental benefits through a reduction in carbon-dioxide emissions by over 150,000 tons and preserving the equivalent of 200,000 acres of U.S. forests.

Earth day is an event to remind the community to reflect on its responsibility for the world we live in and take action. This year on Earth Day week, Sunpin Solar California team took action by taking time out of its day to volunteer for Earthroots Field School in Trabuco Canyon, California. Earthroots is a non-profit educational organization dedicated to cultivating a sense of care and connection between people and the natural world. Their vision is to create a world where people of all ages, abilities, cultures, and affiliations understand how our actions influence the world around is.

While being busy developing utility-scale solar projects and putting more sunshine to work, Sunpin Solar also wants to give back to the community and to the planet that we take so much from. Being part of the volunteer effort taught us to be more connected with nature and reminded us that our planet is even more delicate than we think it is. Earthroots Fields School provides a great platform and different activities for everyone to have a fulfilled afternoon.

One Seed at a Time

Seed balls have a deep connection between the people making them, the people spreading them, and nature itself. Our team spread hundreds of seed balls made by other groups and made hundreds more for future groups of students and adults to throw and spread around Earthroots and other sites. These seed balls contain buckwheat seeds, which will grow to become educational plants for future students to cultivate and process into edible food.

Seed balls are a quick and effective way to plant seeds. They are made by coating seeds in a mixture of clay and compost, which protects the seeds from the harsh dry weather until the first rainfall, where the seeds are deposited into the soil.

Building a Composting Bin and Latrine

The average American generates about 7 pounds of waste per day according to an article published by Frontier Group. Americans as a whole generate over 258 million tons of trash per year. Earthroots plans to build a composting bin and latrine, which will eliminate almost all of the waste that the site itself will produce. Helping to build the structures to reduce even the smallest waste production reminded us to be mindful about our own daily activities and the consequences that they have on the environment.

The composting bin will break down food scraps left over from Earthroots camps and process it into compost that will be useful to plants. The new latrine would be an environmentally friendly alternative to the portable bathrooms currently on-site, which contain blue chemical that is harmful to the environment.

Educational/ Dining Table

Providing an outlet for the younger generation to be exposed to nature and to develop an early sense of responsibility for the environment is key to building a community that values sustainability. Sunpin Solar sanded a table which would be used by children and adults who visit the site in the future. The table would be where future campers and students on field trips will dine and learn about nature and sustainability practices. 

Removing Harmful Weeds 

Weeds grow fast and consume a large amount of nutrients, water, and space, causing plants and baby trees to die. In the summer, the weeds dry up and easily become a fire hazard. Pulling weeds allow various useful species, such as purplehead flowers and allows for fruit trees to thrive. The dried weeds would be packed into bales of hay for various purposes across the site. The extra space and nutrients in the soil also gives room for the seed balls we made to grow.

Planting a Tree

Every 2 seconds, humanity destroy an area of forest roughly the size of a football field for building material, paper, or land according to studies published by One Tree Planted. Though there are heavy reforestation projects in place, the efforts do not exactly compensate for 80% of the world’s forests that are already destroyed.

At Earthroots, our team worked hard to plant a tree. The single tree may not have a major impact on reforestation efforts, but it will serve as a small step and an example for future students about the hard work and years needed to produce the natural resources in which humanity so often takes for granted.

Solar Panel Donation

Sunpin Solar donated a solar panel to the Earthroots site, which would be used to power the site’s supply shed. The storage shed is currently lit with only a small lamp, making it dangerous to navigate through, and hard to organize effectively. With the future lighting system powered by the solar panel, Earthroots will be able to better utilize the storage room and operate it without safety hazards.

Sunpin Solar’s experience at Earthroots continues to teach us to value nature and uphold our responsibility to protect our planet. Earthroots is an inspiring organization, as seen in its efforts to completely reduce waste, even though they are already upholding so many environmental responsibilities and projects. Our team is proud to have been able to contribute and work on so many projects that will in turn help educate and inspire the younger generation to become more environmentally aware and take action.

A big thanks to Jodi, Executive Director of Earthroots, and her team for having us! Learn more about Earthroots here!

Solar energy is one of the easiest and smartest investments a commercial real estate (CRE) developers can make. A few years ago, investing in solar was often dismissed by property owners and managers as either too expensive and complicated thinking the effort was not worth the financial return. This has changed. Installing a solar photovoltaic (PV) array is one of the best ways to cut utility costs, raise rents and save on common area maintenance (CAM) reimbursements.

Solar Energy Saves Money. Period. 

Since 2001, installed solar costs have come down approximately 10% for Commercial & Industrial (C&I) properties. Between 2017 and 2018, installed solar prices continued a ten-year trend of falling: $3.1/W for small non-residential systems (a $0.4/W or 11% decline), and $2.2/W (a $0.1/W or 5% decline) for large non-residential systems, according to an ongoing study at the UC Berkeley Lab.

Attractive Federal and State incentives compound the reduction in energy expenses. The most universal is the Federal Investment Tax Credit (ITC) which is a 30% credit for the system cost. Many states offer other incentives including rebates, renewable energy credits and financing programs that can be used to cover up to 80% of the overall costs.

Solar is a building improvement that will raise revenue while lowering operating expenses. Energy represents an average of 19% of total expenditures for the typical office building. A C&I solar project can lower annual energy expenditures between 20 – 40% depending on commercial electricity rates and local incentives. Some states – such as CA, MA, NY, NJ and more – retail electricity prices are much higher, which makes the solar bottom line even stronger. 

Owners of large warehouses or similar properties with an unobstructed rooftop could also benefit from leasing the rooftop space to a company such as Sunpin Solar that will install solar panels and generating PV power. Many states are offering significant financial incentives for such projects.

There are so many options.

In the past, solar energy could only serve the common areas on multi-tenant properties. This is no longer the case. The recent introduction of “virtual net metering” allows individual tenants to benefit from commercial solar systems – the result is an opportunity to present higher rents, and this provides an opportunity to extend a tenants lease with guaranteed energy savings cooked into the terms.

For CRE developers who do not want to take on the costs of owning and operating installed solar, an Operating Lease is also a popular option that allows for quick ownership of the solar asset without a large output of cash, and often a lessor is relieved of equipment maintenance.

Another popular option is a Power Purchase Agreement (PPA) in which a third party developer, such as Sunpin Solar, owns, operates maintains the photovoltaic system and charges a set rate for electricity.

Even if a property is not suited for solar installation, a building can still benefit from other large-scale solar projects through wholesale solar energy sales. Cost of wholesale solar has dropped dramatically and where this used to be an obscure option, the CRE industry is starting to take advantage of this through local community solar projects, municipal purchasing or off-site solar procurement.

Sunpin Solar

Sunpin Solar, one of the nation’s leading solar development and investment companies has completed several successful CRE projects. The Austin Rooftop Solar project , a rooftop solar installation in Chicago, Illinois is one of the largest rooftop solar systems in the Midwest. It is not only saving the building owner money but is helping the state meet its sustainability goals.

Contact Sunpin Solar today to learn your options to get started saving with solar energy!

We are Sunpin Solar: a leading solar energy development and investment company that acquires, develops, finances and owns utility-scale solar projects globally. Located in the heart of sunny Southern California in the city of Irvine, since 2012 we have focused on superior project development, asset management, financing, engineering, procurement, construction management and operations of commercial and utility photovoltaic solar plants.

Why Sunpin Solar?

We are committed to making the world a better place by creating good clean energy, helping individuals and businesses benefit from solar, and creating hundreds of jobs along the way.

Our mission is simple and powerful: Sunpin Solar is dedicated to creating a brighter future by harnessing the sun to facilitate solar investment and development across the globe.  

In a growing solar industry, we distinguish ourselves by honoring five core values that form the foundation of our customer service and work ethic. We are caring, adventurous, flexible, diligent, and collaborative.  

Not only has this philosophy has helped us achieve our standing as one of the nation’s top five solar companies, but most importantly, it is what leads to a smooth, stress-free and lucrative experience for our clients.

Who Sunpin Solar Works With?

We are proud of the diverse portfolio of projects we’ve executed, each unique and each benefiting our key stakeholders – landowners, energy buyers, investors and utility companies – in a variety of ways. Highlights include:

ColGreen North Shore Power Plant, Mecca California

Located within the Imperial Irrigation District (IID) Utility territory, the ColGreen North Shore system comprises almost 500 acres with a 35-year lease. The ColGreen North Shore Solar Farm’s 96,350 kW capacity reduces energy costs and helps meet community and sustainability goals. Sunpin Solar also created 425 jobs during the peak construction phase.

The ColGreen North Shore Solar Farm entered into an innovative index structured PPA where the power buyer purchases the energy at a wholesale rate and SRECs (Solar Renewable Energy Credit) at fixed prices. Both power buyer and the project investor benefited greatly.

 

East Acres Solar Farm, Pittsfield Massachusetts

East Acres is a 4.4MW (DC) photovoltaic solar generation system. This 77-acre facility is located on retired campgrounds previously operated by the Young Men’s Christian Association, repurposing this land for solar energy produces revenue – $931,000 Total tax income over 20 years/ $46,500 annually – as well as clean power. 

With a 4,397 kW capacity that cuts energy costs for the Western Massachusetts Electric company and the residents of MA, and helps both the utility and the Commonwealth meet their sustainability goals.

 

Church Hill Solar Farm, Maryland

Church Hill Solar Farm, LLC is a 7.36 MW (DC) utility-scale solar PV generation facility located on the eastern shore of Maryland. The system generates approximately 9,100 MWh a year, enough power to provide electricity to almost 1.5 Million homes!  This solar project has secured a ground lease for a 25-year term with two five-year options (35-year lease in total), providing clean electric power to Maryland’s residents for a generation. It has also yielded a Clean Energy Production Tax Credit of over $400,000.

The Church Hill Solar Farm’s 7,360 KW capacity not only reduces energy costs for both DPL and southern Maryland’s residents, but it also helps both the Delmarva Power and Light company and the State of Maryland meet their sustainability goals.

 

Austin Rooftop Solar Project, Chicago Illinois

The Austin Rooftop Solar project is one of the largest rooftop-mounted solar systems in the Midwest. This project’s 2,000 KW capacity dramatically reduces energy costs for the building owner, and it also helps Chicago and the State of Illinois meet their sustainability goals.

Power generated by this array provides an estimated reduction of over 28,600 tons of CO2, the equivalent to planting over 1,369,830 trees or displacing CO2 from emissions from the electric use of over 6,650 homes.

We’d love to talk with you about how we can help you share the benefits of solar energy – contact us today!

The Massachusetts Commonwealth has recently enacted a new solar energy benefits SMART (Solar Massachusetts Renewable Target) program opens the doors for local public housing authorities to benefit from solar energy. Gone are the days when solar energy was prohibitively expensive for entities such as local housing authorities. Sunpin Solar, a leading solar energy development and investment company, can help Massachusetts public housing authorities connect with solar power to start taking advantage of these benefits immediately.

Massachusetts’ community solar platform is based on its general net metering law. Under its Virtual Net Metering (VNM) program, solar project owners may allocate their net metering credits to other utility customers that reside in the same utility service territory and load zone, and meet basic requirements for net metering. These policies make Massachusetts one of the leading states in community solar energy development.

Massachusetts Public Housing Authorities have been taking advantage of the state’s support of solar for years under the now expired SCREE II program. New incentives under the SMART program continue to benefit low-income community solar projects such as public housing. Community solar projects in which half of the energy output will serve low-income customers will be awarded 6 cents per kilowatt-hour on top of the base compensation rate. This is a serious incentive for local housing authorities to consider.

East Acre Solar Farm, located in Pittsfield, MA is a Sunpin Solar development that sources the Pittsfield Housing Authority’s energy. This substantial solar facility is located on 77-acres of retired campgrounds – giving the land the opportunity for rebirth and to serve the local community in a new way. The East Acres solar farm’s 4,397 kW capacity reduces energy costs for the Western Massachusetts Electric company and the residents of MA. Additionally, this project helps MA reach its sustainability goals – 4,397 kW of solar power is the equivalent of:

• The CO2 emissions of 3,580,221 pounds of burned coal
• The greenhouse gas emission of a passenger vehicle driven 8,020,397 miles
• The carbon sequestered by 3,854 acres of US forests in one year

Sunpin Solar, a leading solar development and investment firm with over 100 MW of large-scale solar projects in the development pipeline in Massachusetts is an obvious choice for local housing authorities to partner with as energy off-takers to power public housing projects. Not only does the public housing authority benefit financially, but the community benefits from tax revenue, and the Commonwealth meets its clean energy goals.

If you are a local housing authority based in Massachusetts and would like to take advantage of these incentives, contact Sunpin Solar to learn about how you can get started today!