Residential solar financing companies are continuing to expand, thanks to homeowner demand and financiers willing to invest. Most recently OneRoof Energy has joined the fray, completing an agreement to invest in up to $100 million in residential solar projects. That brings the company’s total up to more than $200 million in funding.
The recent agreement is with MS Solar Holdings Inc.—a wholly-owned subsidiary of Morgan Stanley, project developer and owner Main Street Power Company, Inc. and National Bank of Arizona. Under the agreement National Bank of Arizona will provide debt financing and OneRoof will utilize MS Solar’s and Main Street’s residential lease financing platform. The companies have created a new fund, MySolar II, LLC, to provide the financing.
“We are excited to partner with Morgan Stanley and Main Street on this investment, as it represents a strong vote of confidence in our future,” said David Field OneRoof Energy’s CEO. With the new fund, OneRoof has raised more than $200 million in corporate capital, project financing and tax equity funding since closing its first tax equity fund in September 2011. The newly created fund will allow OneRoof Energy to expand its residential solar lease opportunities Arizona, California, Colorado and Hawaii.
The new fund is far from the first investment Morgan Stanley has made in residential solar leasing. For instance, in 2012 it created the first MySolar tax-equity fund with Main Street Solar and Clean Power Finance. That was funded with $300 million. Morgan Stanley also has worked with other third-party ownership companies like SolarCity.
OneRoof Energy’s Solar Finance program offers flexible financing options with little to no up-front costs, according to the company. Under its offerings homeowners can anticipate a lowering of their electric bill between 5 percent and 25 percent.
To support its third-party ownership leases OneRoof said it has created alliances with more than 100 installers in service territories. As such it estimates financing solar for more than 10,000 homes in 2013. Since its inception in 2011, OneRoof has grown quickly. In 2012 the company expanded its staff, creating 60 jobs in its San Diego-based community. The company also has attracted strategic investments from a number of other companies including Hanwha Group, Black Coral Capital and Altenergy Holdings, LLC.