Sol-REIT will be the first-ever investment trust to bring mortgage REITs to the solar energy market. By financing solar like real estate, Sol-REIT 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, Sol-REIT increases developers’ project cash flows, allowing them to transact at substantially greater valuations at commercial operation date (“COD“) resulting in higher developer feels and maintain long term ownership on their balance sheets.
For solar asset portfolio owners, Sol-REIT allows owners to swap out high-cost tax equity and short-term debt from project capital stacks with lower costs through longer-term loans that are an unavailable option in the market.
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.