Summit Ridge and 1st Source Bank expand partnership in debt and tax equity deal
ARLINGTON, Va., Sept. 9, 2020 /PRNewswire/ -- Summit Ridge Energy ("SRE") and 1st Source Bank today announced the expansion of their partnership through the bank's commitment to provide debt and tax equity to fund an additional 8 of SRE's Illinois community solar projects totaling 23 MWdc.
"We're looking forward to continuing our debt and tax equity partnership with 1st Source Bank, which has proven successful since launching in March of this year," said Adam Kuehne, Chief Investment Officer of SRE. "Despite the ramifications of COVID-19, we have collectively put a significant amount of capital to work in a short period of time, providing meaningful savings to residential customers in Illinois."
"We're pleased to continue our partnership with Summit Ridge Energy and to provide our services on these solar projects," states Russell Cramer, VP, Solar Financing. "1st Source is a relationship bank, and we are always grateful to deepen the relationship with our clients when the opportunity arises. We're very pleased to aid in providing Illinois communities with sustainable energy sources."
1st Source Bank previously provided construction debt, term debt and tax equity to 5 of SRE's Illinois community solar projects, including its Fulton project, which was the first community solar project to become operational in Ameren territory when it was energized in June. 1st Source Bank provided tax equity to this project in partnership with its co-investment partner, Nelnet, Inc. The remaining projects will become operational between the third quarter of 2020 and the first quarter of 2021. In total, the 13 projects will enable approximately 6,400 residential customers across the Ameren and ComEd service territories to receive the benefits of community solar, including savings on their electricity bills.
The 1st Source partnership has proven complementary to SRE's existing joint venture funding platform, through which SRE owns a total of 36 Illinois community solar projects.
Summit Ridge currently has 23 projects under construction across the United States with another 18 set to break ground by year's end representing approximately 145 MW of community solar that will be operational by Q3 2021. Projected annual cost savings for residential customers subscribing to these projects is more than $1,000,000.
Despite the COVID-19 crisis, community solar remains the fastest growing segment within the U.S. solar market driven largely by predictable customer savings without the need to physically install solar on one's home or business.
SEIA reports that with the right federal and state policies in place, the solar industry will employ more than half a million Americans by 2025.
About Summit Ridge Energy
Summit Ridge Energy is the leading owner-operator of U.S. community solar projects. The team has been a strong force within the U.S. commercial solar market for years and was instrumental in the creation of "virtual" solar power purchase agreements and associated financing structures. Summit Ridge Energy has leveraged this experience to launch Summit Ridge Capital, a dedicated funding platform that acquires pre-operational projects within the rapidly growing community solar energy sector. Follow Summit Ridge Energy on LinkedIn and Twitter for updates, or learn more at srenergy.com.
About 1st Source
1st Source Corporation, parent company of 1st Source Bank, has assets of $7.4 billion and is the largest locally controlled financial institution headquartered in the northern Indiana-southwestern Michigan area. The Corporation includes 80 banking centers, 15 1st Source Bank Specialty Finance Group locations nationwide, eight Trust and Wealth Advisory Services locations and ten 1st Source Insurance offices. For more than 155 years, 1st Source has been committed to our mission of helping our clients achieve security, build wealth and realize their dreams. For more information, visit www.1stsource.com.
About Nelnet, Inc.
Nelnet (NYSE: NNI) is a diversified and innovative company focused on offering educational services, technology solutions, telecommunications, and asset management, operating from four major divisions: Nelnet Diversified Services, Nelnet Business Services, Nelnet Communications Services, and Nelnet Financial Services. Nelnet helps students and families plan and pay for their education and makes the administrative processes for schools more efficient with student loan servicing, tuition payment processing, school administration software, and college planning resources. With its acquisition of ALLO Communications, Nelnet also offers fiber-optic services directly to homes and businesses for ultra-fast fiber internet, television, and telephone services. The company also makes investments in real estate developments, renewable energy projects, and new ventures. For more information, visit nelnetinc.com.
SOURCE Summit Ridge Energy
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