SolaREIT, a 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 MW solar project in Pennsylvania will be constructed.
“We’re excited to work with PTR Holdco and Prospect 14 to bring more solar energy to Pennsylvania,” says Laura Pagliarulo, president of SolaREIT. “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.”
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.
“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,” mentions Carl Jackson, partner of Propect 14.
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.
“We’re thrilled to partner with SolaREIT on this project,” comments 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.