SunEdison, Inc. (NYSE: SUNE), a leading global solar technology manufacturer and provider of solar energy services, announced an agreement with JPM Capital Corporation (JPM Capital) whereby they will invest up to $75 million in a $175 million solar energy development fund. TerraForm Power, Inc. (NASDAQ: TERP) will use the financing to purchase up to 60 megawatts of solar power projects that SunEdison will develop and construct in 2014 and 2015. This funding enables SunEdison to continue to offer advantageous pricing and financing to customers, and grows TerraForm Power's already robust project pipeline.
"Putting together a fund with an investment commitment from JPM Capital, one of the world's leading tax equity investors in renewable energy projects, is an important milestone not only for our company, but for the solar industry as a whole," said Ryan Bennett, vice-president of project finance, North America at SunEdison. "This is one of the largest funds of its kind in 2014, and it puts SunEdison and Terraform Power in an ideal position to rapidly grow and expand the solar energy market, all while offering excellent pricing and financing to our customers."
"This fund enables TerraForm Power to make substantial acquisitions that strengthen our position as a leader in the highly fragmented solar energy market," said Carlos Domenech, president and chief executive officer of TerraForm Power. "Our partnership with SunEdison together with JPM Capital's investment commitment positions TerraForm Power to continue our expansion in this fast-growing, high-margin segment."