ROCKVILLE, Md., Dec. 21, 2021 /PRNewswire/ — SolaREIT, a leading solar real estate investment fund, has executed a $2 million solar land deal with developer partners PTR Holdco and Prospect 14. The deal involves a parcel of land on which a 20 megawatt (MW) solar project in Pennsylvania will be constructed. SolaREIT, which launched in late 2020, represents an innovative model in financing solar land and provides more options to compensate landowners for utilizing their land to host solar farms while incenting developers through savings in lease rates.
The project, located in Franklin County, will likely begin construction in the second quarter of 2022. SolaREIT structured the deal to purchase the land pre-construction, allowing the solar project to move forward.
"We’re excited to work with PTR Holdco and Prospect 14 to bring more solar energy to Pennsylvania. Small, utility scale projects require large expanses of land and land purchases that tie-up capital can oftentimes deteriorate project economics. SolaREIT provides financial flexibility to both landowners and solar developers to ensure projects get built," said Laura Pagliarulo, President of SolaREIT.
"Prospect14 is in active development of 5 GW of solar assets. This is representative of over 100 landowners with very different economic profiles. Not every landowner fits into the traditional solar lease, some require bespoke structures that can be customized. SolaREIT armed us with optionality to approach landowners which increased transaction certainty," said Carl Jackson, Partner of Propect 14.
"We’re thrilled to partner with SolaREIT on this project," said Guy Winters of PTR Holdco. SolarREIT’s innovative approach allowed us to maintain site control and satisfy our landowner as we pursue the necessary authorizations to build the project," said Guy Winters of PTR Holdco.
While most solar projects are on leased property, SolaREIT offers alternative options to developers and asset owners that reduce their lease costs. Earlier this year, SolaREIT announced their "Pre-Paid Solar Land Lease" allowing solar developers to provide landowners with up-front payment for up to 40-years of lease payments while reducing developers’ lease costs and therefore ongoing operating expenses.
About SolaREIT: SolaREIT, based in Rockville, Maryland, focuses on making investments in acquiring, developing, and managing climate-friendly solar assets that support the transformation to a low-carbon economy. We aim to provide unique products to clients while generating attractive returns for our investors. For more information, please visit www.solareit.com.