Open Energy, a debt finance firm that provides project loan financing to solar commercial developers and project owners, has closed two non-recourse solar loans totaling $500,000 with solar developers JJR Power and Vis Solis. Through its 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. 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 kW commercial solar portfolio in the metropolitan areas of Tennessee and Alabama.
"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."
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%. Through Open Energy's marketplace lending model, investors have the opportunity to invest in high quality solar project debt.