The international solar company hep announces the successful completion of debt and equity financing for a “community solar” portfolio in Oregon, USA. The 17-megawatt portfolio, consisting of six solar projects, began commercial operation in December 2022 and is expected to produce 22,592,000 kWh of solar energy in its first year. This is enough to supply nearly 2,618 households with electricity and avoid 13,930 tons of greenhouse gas emissions.
Solar company hep finalizes debt and equity financing for a 17 MWp “community solar” portfolio in the U.S.
Benefits of “Community Solar” Projects
The “community solar” concept is a common practice in the U.S. for financing solar projects. Various electricity consumers—both individuals and businesses—jointly finance a solar project within a community and share the electricity it produces. For investors, the concept offers the opportunity to invest in well-diversified cash flows over the long term, which are secured by a power purchase agreement with a major utility company. For customers, this means access to clean, renewable energy without having to commit to owning the solar installations.
“Our mission, as expressed in our slogan ‘there is no planet b,’ is to invest in sustainable energy for a healthier environment,” explained Vivek Srinivasan, Head of Project Finance US. “Despite the challenges the industry has faced over the past two years, the completion of the portfolio in Oregon demonstrates our unwavering commitment to this cause and underscores our expertise in investing in, developing, and delivering sustainable energy solutions.”
Total investment volume of $40 million
The portfolio, with a total volume of approximately $40 million, enabled hep to contribute more than $16 million on behalf of its ESG-conscious investors. The remainder of the capital consists of senior secured loans and tax-deductible equity. For all six projects, the targeted number of electricity consumers from the surrounding communities was achieved.
About hep: Promoting the global energy transition
hep is a global solar development and investment specialist. Founded in Germany in 2008, the company has since developed solar projects in Europe, Asia, and North America with a total capacity of more than 1.3 gigawatts, including 250 megawatts in the U.S. From the search for “greenfield” sites to the long-term operation of a solar plant, hep offers all the products and services necessary for successful implementation at every stage of a solar project—namely, project development, construction, and operation. At the same time, hep’s financial experts design international investments with varying durations and risk-return profiles to finance the projects.
Responsible Investing with hep
hep offers German investors the opportunity to invest directly in climate protection funds. In addition to customized solutions for large investors, hep also enables institutional and private investors to invest in the world’s largest solar markets: the U.S., Japan, Germany, Canada, and now Poland as well. The current hep investment fund is designed in accordance with Article 9 of the EU Regulation on sustainability-related disclosure requirements in the financial services sector (Sustainable Finance Disclosure Regulation), and its economic activities are in line with the Taxonomy Regulation. This ensures that the fund meets the highest sustainability requirements for financial products currently available on the market.