WASHINGTON, Aug. 6, 2015 /PRNewswire/ -- Distributed Sun ("DSUN") today announced the formation of sunFIVE, a solar tax equity fund. Managed by DSUN, sunFIVE will invest in commercial and industrial solar assets primarily with unrated credit off-takers. The fund closed its first transaction in July, and plans to deploy $50 million in tax equity through December 31st, 2016.
In July, sunFIVE invested in a 1.8MW photovoltaic project developed and constructed by GX Investment, Incorporated ("GX"), a joint venture between ET Solar, Incorporated ("ET Solar") and Jiangsu New Energy Development Company, Ltd. ("JSNE"). ET Solar is an international photovoltaic module manufacturer. JSNE is a renewable energy developer and investor in China. The project will be owned and operated through a special purpose entity under the name Bakersfield 111 LLC. Power from the project will be sold through a 20-year, Power Purchase Agreement to Pacific Gas and Electric Co.
Boris Schubert, Group VP, Global Project Development of ET Solar said, "Distributed Sun's expert transactions team completed the required due diligence and investment swiftly. We value their 'get-the-deal-done' attitude and their ability to overcome obstacles along the way. ET Solar would be pleased to work with Distributed Sun again."
"ET Solar was a fantastic partner every step of the way," said Chase Weir, CEO of Distributed Sun. "We look forward to a long and fruitful partnership."
Jeff Weiss, Managing Director of DSUN, said, "We expect to see a growing demand for tax equity between now and the end of 2016 when the Investment Tax Credit is scheduled to stepdown. Those projects with commercial and industrial scale off-takers in the 500 kW to 5MW size range will increasingly need a unique, flexible and cost-effective tax equity investment option. DSUN's dedicated tax equity funds are positioned to serve this industry segment."
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Robert C Henning
SOURCE Distributed Sun LLC