US residential solar financing provider Spruce Finance Inc said Tuesday it has closed a USD-120-million (EUR 107.7m) credit facility to support the growth of its solar lease and power purchase agreement (PPA) business.
The financing, the company’s first syndicated back-leveraged facility, has been arranged by Investec.
Spruce chief executive Nat Kreamer said the company’s residential solar lease and PPA, solar lending and efficiency lending businesses were growing more than 50% so far this year, outstripping the 20%-30% average growth in the residential solar industry. “The capital markets have responded positively to that growth, and we expect to raise more financing for our solar and efficiency businesses from a variety of sources this year,” Kreamer added.
Spruce, formed through the merger of Kilowatt Financial LLC and Clean Power Finance (CPF) Inc, has a network of channel and contractor partners that offer homeowners financing for solar systems and efficiency improvements. It says it has raised more than USD 2 billion so far.
At the start of 2016, Spruce said it has secured USD 175 million from US Bank to support residential solar systems in 12 states over the course of 2016.