Transaction costs in solar financing turn smaller distributed generation projects into unattractive investments – at least for traditional bank lenders.
That’s the reason for New York-based startup Open Energy Group. A pioneering solar debt financing service, Open Energy focuses on providing liquidity for small-scale solar projects. The savvy founders saw the need and developed a revolutionary tech-enabled financing solution for an underserved market.
Open Energy’s online peer-to-peer lending platform bypasses traditional banks to get investor dollars directly into qualified solar projects. The company launched a new web portal that permits developers to apply for financing, compare forecasts and terms, and close on a loan within 30 days.
The business model looks to support commercial and industrial projects sized between 250 kilowatts and five megawatts, providing previously unheard-of small loans from $500,000 to $5 million. The key to success is volume.
Loeb & Loeb has played a major role helping Open Energy streamline its process and systems in order to make the model cost-effective. We believe in Open Energy’s innovative service. And we’re assisting in creating the contractual and procedural uniformity that will help the company reach its vast growth potential and meet market demand.
In the energy finance arena, Loeb & Loeb pairs an in-depth understanding of the industry with our established reputation as a global leader in crafting successful capital structures for borrowers and lenders.
So far, our work with Open Energy has resulted in the financing of multiple portfolios of operated distributed generation solar projects across the country. And we’re just getting started.
With help from the Open Energy/Loeb & Loeb partnership, the outlook for solar project financing gets sunnier every day.