Open Energy, an innovative debt finance firm that provides project loan financing to solar commercial developers and project owners through its unique marketplace lending model, today announced the closing of two non-recourse solar loans totaling $500,000 with leading solar developers JJR Power and Vis Solis. Through its innovative, proprietary online borrower platform, Open Energy simplifies the loan process, enabling more solar loans by cutting down on the high transaction costs that have hindered the growth of the commercial sector.
JJR Power received a project loan for a portfolio of rooftop solar projects, including a school and a church, in Minnesota. The projects deliver consistent clean energy to the users and are supported through an incentive program from Xcel Energy, a major U.S. electric and natural gas company. Vis Solis, a returning borrower, closed a debt financing for a 2 project commercial rooftop portfolio in Tennessee. The company worked previously with Open Energy in 2014 to borrow $750,000 in debt finance for a 500 kilowatt commercial solar portfolio in the metropolitan areas of Tennessee and Alabama.
"We are very pleased to have received a portfolio loan from Open Energy," said John Jaffray, CEO of JJR Power. "They were fast, responsive, and their non-recourse loan was expertly structured, to unlock trapped project cash and enable us to expand our solar business. We look forward to working with Open Energy for our next non-recourse, solar debt financing solution."
"The commercial space is incredibly underserved and companies often lack the financing options that they need to propel growth," said Graham Smith, CEO of Open Energy. "We've seen enormous growth in our loan program, with new and returning customers as testament to not only the growing need in this industry for an innovative approach, but also to the value of our loan product and process. We are constantly honing our method to ensure that we can provide the best possible financing options to this industry and look forward to helping this sector continue to expand."
In addition to providing a time- and cost-efficient application and funding process for developers and asset owners, Open Energy offers lenders a range of attractive debt investment opportunities, consisting of long-term, lower-risk yields with fixed annual returns ranging between 5.5 and 8 percent. Through Open Energy's marketplace lending model, investors have the opportunity to invest in high quality solar project debt.
"When we thought about financing this project, the decision to work with Open Energy again was a no-brainer," said Carlos Mayer, CEO of Vis Solis. "The fixed costs on the loan transactions has allowed us to avoid exorbitant fees we would incur with other lenders and enabled us to grow our portfolio of solar assets."