Residential solar provider OneRoof Energy (TSXV:ON) is a master of partnerships. The most recent, with a digital subscription service, was just the latest in a string of mutually beneficial partnerships that are helping the company increase its customer base.
Last week, OneRoof announced a new financing partnership. The company said it has reached an agreement with an unrelated third-party securing equity for a $58 million residential solar financing fund.
The fund will support an estimated portfolio of more than 2000 residential solar power purchase agreements to be originated over the next 12 months, starting with California, Hawaii, Massachusetts, and New York. The partnership expects to recognize investment tax credits under the American Recovery and Reinvestment Act of 2009.
“We are committed to expanding solar solutions to more homeowners,” commented Dale A. Vander Woude, Executive Vice President – Capital Markets for OneRoof Energy. “This new financing partnership enables us to provide a significantly more efficient sales and installation process by simplifying the financing and equipment requirements.”
OneRoof says the new fund brings together parties with a common belief in distributed generation in a financial structure that takes advantage of the strengths of each party. OneRoof will invest in the partnership, and will remain the primary point of contact with the homeowner for the life of the transaction as operations and maintenance provider.
This new partnership should even enable future partnerships of different kinds. “One of the many benefits of this new residential solar fund is attracting additional sales channel partners by providing new sources of capital and increasing their sales capacity,” said Vander Woude.
OneRoof Energy expects the fund to be fully deployed within 12 months, and also expects to develop a long-term, multi-investment relationship with its new partner.