Open Energy provides project finance loans to commercial solar developers and asset owners. We have two loan products: a construction debt product and a term debt product. In a typical transaction, Open Energy will provide both construction and term debt to a solar developer who has signed a Power Purchase Agreement (PPA) with a creditworthy counterparty such as a municipality or corporation.
Open Energy was founded to enable the growth of the US commercial and industrial solar PV sector. We provide financing options typically for projects in the 500 kw to 10 MW range. In addition to lending to help fund construction or newly operating projects, we also refinance operating projects and portfolios.
No. Open Energy provides project finance loans. We do not offer corporate loans to companies that wish to own and utilize its power. If your company or organization is looking to benefit from onsite solar without owning the systems, we can introduce you to some recommended solar developers who offer various options such as a Power Purchase Agreement.
While Open Energy’s core product focus is traditional debt, we are able to offer sale-leasebacks in certain cases. The best way to determine what Open Energy can provide for your project is by submitting a complete project application.
While Open Energy does not have tax appetite, we do have a network of tax equity investors. In some cases, if Open Energy is providing debt for a project for which tax equity is also needed, we can work with our partners to put forward an affordable debt + tax equity solution.
No, Open Energy does not provide project equity. However, we do have a network of groups looking to acquire projects and can often facilitate useful introductions with vetted sponsors.
The length of Open Energy’s due diligence process is largely determined by the extent to which core project documents are readily available for review and approval. When a developer is able to present all of the project information requested, Open Energy aims to complete due diligence and fund within 45 to 60 days (including non-business days).
No, at this time Open Energy does not offer development capital. We can often facilitate introductions to other financing groups when we do not offer the exact solution that is being sought.
Open Energy is committed to reducing costs associated with financing solar projects. Unlike many lenders, Open Energy provides capped transaction fees. This means that prior to signing a term sheet, borrowers will know what they would be expected to pay in transaction fees. This amount is the sum of two parts. One part of the total fee is a fee for Open Energy’s work (typically around 2.00% of the loan amount). The second part of the total fee will go toward costs for due diligence, such as legal, engineering, and filing reviews. Projects with characteristics that necessitate more extensive due diligence (multiple sites, separate equity and tax equity providers, etc.) will have higher costs. Conversely, projects that require less involved due diligence (i.e. a single operating site without tax equity involvement) will have lower costs. Additionally, costs can be reduced for repeat customers thanks to common documents from one transaction to another.