By SALT LAKE CITY — With the closing of its first tax equity fund, Suncrest Solar, Inc. is a full-service provider of residential solar energy systems, the company announced today with Suncrest investors, including an affiliate of Tenaska and Sorenson Capital.
With the tax equity fund, Suncrest not only designs, permits, sells and installs solar panels on the roofs of residential electric utility customers, but it also owns, operates and maintains those systems throughout the entire contract period – an important benefit to homeowners.
“We are now part of an elite group of vertically integrated distributed solar companies,” said Suncrest President John Corliss. “Our new power purchase agreements provide important continuity of service to our customers, a critical stepping stone in expanding our presence throughout California and into other markets.”
Suncrest partnered with industry-leading tax equity provider U.S. Bank and commercial lenders KeyBank and Silicon Valley Bank to create a flexible fund that supports nearly unlimited growth through 2016.
“This tax equity fund enables our sales force to sell on our own power purchase documentation and shorten the time customers have to wait for final completion,” said Suncrest Senior Vice President of Sales Josh Hatch. “Combine this advantage with our best-in-class sales and operations platforms and we are well equipped to aggressively pursue new sales channels and markets.”
The primary shareholders of Suncrest Solar are Tenaska and Sorenson Capital, and the closing of this fund includes a second investment from independent energy company Tenaska. Tenaska is consistently ranked by Forbes magazine as one of the largest privately held companies in the United States, with $12.2 billion in gross operating revenues in 2014 and more than 340 megawatts of utility-scale and distributed solar projects operating or under construction in California and the northeast United States. Sorenson Capital, a Utah-based middle-market private equity firm with more than $1 billion in assets under management has been a primary investor since inception in 2013.
“Tenaska has always been driven by a desire to find solutions for customers,” said Tim Hemig, Tenaska managing director, distributed solar investments. “Distributed solar energy is one of those solutions to help meet the demand for clean energy among residential, commercial, industrial, government and utility customers. Suncrest is a solid company poised for growth, and it is now in an even stronger position to serve increasing numbers of consumers.”
“U.S. Bank welcomes the opportunity to work with Suncrest Solar as well as its investors, Tenaska and Sorenson Capital,” said Dan Siegel, vice president of U.S. Bancorp Community Development Corporation, a division of U.S. Bank that provides renewable energy tax credit financing. “We take great pride in supporting partners that benefit the environment as well as save homeowners money.”
Suncrest is on track to continue expanding, hiring with the intention of adding sales offices across California and moving into additional states and markets. In July, Suncrest announced the institution of its ProAlliance program designed to help new and established sales focused companies make easy transitions into solar energy sales.
“We are very pleased to provide financing that allows Suncrest to become a vertically integrated distributed solar company,” said Andrew Redinger, managing director and head of KeyBanc Capital Markets’ Utilities, Power & Renewable Energy Group. “This partnership shows our continued involvement and commitment to the renewable energy sector, and we look forward to working with Suncrest again in the future.”
“Silicon Valley Bank is proud to partner with innovators like Suncrest Solar in the renewable energy space,” said Dan Baldi, managing director of Silicon Valley Bank’s Energy & Resource Innovation team. “Suncrest has ambitious goals, and we are pleased to be part of the financing solution to help propel it forward.”
About Suncrest
Suncrest Solar (suncrestsolar.com) is a residential solar company that’s dedicated to building a brighter future. Suncrest’s business model is designed to bring clean, affordable energy to residents in California and surrounding regions. Suncrest has sales and installation locations in the Inland Empire, Orange County and San Diego, California. The company’s hub performs engineering, design, permitting, accounting and administrative activities in the Salt Lake City office.
About Tenaska
Tenaska (tenaska.com), based in Omaha, Nebraska, is one of the largest independent power producers in the United States. Established in 1987, Tenaska has developed approximately 9,000 megawatts (MW) of electric generating capacity across the country. Tenaska affiliates operate and manage 18 power plants; market natural gas, electric power and biofuels; and handle private equity and acquisition management, fuel supply and transportation systems and electric transmission development.
About Sorenson Capital
Sorenson Capital (www.sorensoncapital.com) was founded in 2003 as a private equity firm that helps companies grow and improve their businesses. The company is built on a foundation of trust, loyalty and integrity, and exists to create value by providing financial resources and by partnering with the management teams of its portfolio companies to help grow and strengthen businesses. Sorenson Capital is based in Salt Lake City.
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