FinTech/ESG: Solar Financier Loanpal Ties Up With Blackstone for $300M of Solar Loans

https://dailyalts.com/wp-content/uploads/2020/08/Solar.jpg

Blackstone will invest $300 million through GSO Capital in solar loans originating on Loanpal’s platform.

Loanpal, the fintech that is a market leader in financing of residential solar installations, announced Thursday that Blackstone (NYSE: BX) had committed to invest $300 million in solar loans originating on its platform. (CROWDFUND INSIDER)

The amount committed will enable 10,000 homeowners to finance their solar systems, thereby reducing their homes’ carbon footprint.

Loanpal solar loans

Loanpal offers instant residential solar loans through its technology-enabled loan platform. Over 130,000 customers have deployed solar at their homes using Loanpal funding aggregating $4 billion. These installations generate over  1 Tera Watt Hour of carbon-free energy per year.

In turn, Loanpal’s high-quality borrowers attract funding on the platform from financial institutions.

“Our investment will enable Loanpal to continue to expand throughout the United States, and we believe represents an attractive opportunity for our investors to earn compelling risk-adjusted returns and invest in the growing demand for renewable energy,” said Rob Camacho, Senior Managing Director and Co-Head of GSO’s Structured Products group, and Rob Horn, Senior Managing Director and Co-Head of GSO’s Energy group.

Climate change

“To solve Climate Change we need to deploy 10 trillion dollars in the US to replace fossil fuel sources of energy,” said Tanguy Serra, President and Chief Investment Officer at Loanpal. “As opposed to fossil fuel-based energy, renewable power has no feedstock and no ongoing costs so all that matters are the upfront capital expense and solving for scale deployment. As one of the largest asset managers in the world, Blackstone is an ideal partner for Loanpal. Climate Change will get solved by deploying billions of dollars per month at stable returns over the next decade.”

COVID-19 to affect the solar market

A report by Wood Mackenzie says, however, that residential solar finance in 2020 will not enjoy the kind of growth rates seen in 2019 – primarily due to the COVID-19 pandemic.

Wood Mackenzie said loan defaults were yet not a concern, though the real picture will emerge once the pandemic-related support measures from the government wind down.

However, of worry is the likelihood that solar installers may go out of business resulting in a fall in loan volumes.

Wood Mackenzie has reduced its 2020 and 2021 U.S. residential solar forecast by 31 percent and 26 percent, respectively, due to the economic impacts caused by the virus.

The report said that Loanpal retained the top spot in solar financing in 2019, however.

Related Story:  Solar Energy Financing – Wunder Capital – with Bryan Birsic

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Shape

Latest Alternative Investment News

https://dailyalts.com/wp-content/uploads/2022/01/Bink-app-shot.png
FinTech: Lloyds To Acquire Stake In Loyalty App Bink
January 4, 2022     FinTech, News

Lloyds Banking Group (LON: LLOY), Britain’s biggest mortgage provider, will acquire a minority stake in loyalty app Bink, according to a report by Sky News for an undisclosed amount that…

https://dailyalts.com/wp-content/uploads/2022/01/Screenshot-2022-01-04-at-22-29-49-Screenshot-Pawson-2.png
Digital Assets: Coinbase CEO Armstrong Said To Have Splurged $133M On Home In LA
January 4, 2022     Digital Assets, News, Real Estate

An iconic property in Bel Air, Los Angeles, designed by internationally acclaimed English architect John Pawson changed hands last month for $133 million and the buyer was Coinbase (NASDAQ: COIN)…

https://dailyalts.com/wp-content/uploads/2022/01/47752022922_e4569a2f0e_c.jpg
Alternative Investments/ESG: VegTech Invest Launches Plant-Based Innovation & Climate ETF

VegTech Invest advisory has launched the VegTech Plant-based Innovation & Climate ETF (Ticker: EATV), its first financial product. The ETF offers exposure to publicly traded companies actively innovating with plants…

https://dailyalts.com/wp-content/uploads/2022/01/Screenshot-2022-01-04-at-18-48-26-超·世界.png
Venture Capital: Chinese AI Startup Parametrix Raises $100M, Turns Unicorn
January 4, 2022     Artificial Intelligence, News, Venture Capital

Chinese AI company Parametrix.ai has raised $100 million in a Series B round led by Sequoia China and joined by existing investors 5Y Capital and Gaorong Capital. Though the valuation…