Solar Loan Provider Pioneers Expansion of Climate Bonds Market into U.S. Distributed Solar Industry

Climate Bonds Cost of Solar
Image courtesy of Dividend Solar. Source: Union of Concerned Scientists, ucsusa.org

Dividend Solar announced today that it has joined the Climate Bonds Initiative (“CBI”) as its first partner focused exclusively on the U.S. distributed solar market.

Dividend Solar is a non-bank lender that offers institutional investors the ability to invest directly in the U.S. residential solar market at a meaningful scale. As a member of the Climate Bonds Partner program, Dividend Solar is committed to furthering the green bonds market in the U.S. by delivering investment grade returns that directly address climate change and accelerate the adoption of solar in the United States. By serving as the bridge for large-scale, yield-seeking capital and individual homeowners, Dividend Solar reduces the soft costs of solar and encourages new investors to participate in the solar asset class.

Dividend Solar partners with quality-driven solar installation firms across the U.S. to offer streamlined loan financing to homeowners looking for a better way to go solar. With a nationwide footprint and a loan product that offers Solar-Ownership-as-a-Service™, borrowers enjoy the outsized financial benefits of solar as well as system production guarantees, hassle-free maintenance and performance monitoring at no additional cost. Dividend Solar’s full-service EmpowerLoan™ reduces the friction of going solar and provides investors with stable returns from projects that directly contribute to addressing climate change.

“We are firm believers in the growth of the green bonds market. Investors are increasingly looking to deploy capital in opportunities that support sustainability in a profitable way. With the development of globally-accepted standards for investing in our 21st century energy infrastructure, positive economic, environmental and social returns are no longer mutually exclusive,” says Steve Michella, CEO of Dividend Solar. “By joining the Climate Bonds Initiative as its first partner focused exclusively on the distributed solar market in the U.S., Dividend Solar is supporting this rapidly growing market and continuing to attract new investment capital into the asset class.”

The Climate Bonds Initiative promotes investment in projects and assets necessary for a rapid transition to a low-carbon and climate-resilient economy. By developing a large and liquid Green and Climate Bonds market, the CBI is driving down the cost of capital for climate projects and mobilizing the $100 trillion bond market towards climate change solutions.

“We’re excited to have the opportunity to partner with Dividend Solar. One of our key objectives is to grow aggregation mechanisms for fragmented sectors, and Dividend Solar’s focus is in exactly this area,” says Sean Kidney, CEO of the Climate Bonds Initiative. “Proceeds from Dividend Solar bonds would support projects that directly address climate change and enable institutional investors to invest in a diversified portfolio of climate-positive infrastructure assets.” Investors in Climate Bonds benefit from funding green projects without taking any additional risk or cost, receive greater transparency into a bond’s use of proceeds and have the ability to report on climate impact of fixed income investments. As the demand for sustainable investments continues to grow, investors are increasingly looking to deploy capital in alternative asset classes – including distributed solar loans.

The CBI partnership complements Dividend Solar’s growing network of installation partners across the U.S., enabling the Company to further establish a more efficient, lower-cost solar financing market, which maximizes the benefits for all members of the solar value chain.

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This post was prepared by Solar Thermal Magazine staff.