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Solar Clean Energy Fund No.1

Australia

Last updated 12 May 2020, by Impactyield.

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The Solar Clean Energy Fund No.1 pools funds and intends to provide competitive financial returns to accelerate the uptake of solar in Australia and movement away from a fossil fuel future.

The Fund has an innovative finance structure that enables investors to participate in providing solar finance to Australian Small and Medium Enterprises via Solar Power Purchase Agreements (SPPAs). We plan to derive passive income over the solar contract term (10-15years), as well as take advantage of legislated upfront government incentives through the Small Scale Technology Scheme (STC’s).

We forecast a 15% IRR, with an annual benchmark return set at 10%.

Invest in a brighter future, Invest with Impact, Invest Clean.



Financial description

The investment objective is to receive a regular income stream from power sold to the customer and benefiting from upfront government incentives (Small Scale Technology Certificates) by investing in Solar Power Purchase Agreements on Small and Medium Enterprises in Australia.
Target return: 15% IRR before performance fees and before tax
Benchmark: 10% annual return on drawn capital
Year 1 return: Forecast at 35-40% of initial investment
The Investment Manager has identified a compelling opportunity to take advantage of beneficial financial terms for investors in the under-serviced Australian solar finance sector. The fund will target, finance and aggregate SME assets and will act as a clean energy utility enabler.
The fund aims to generate long-term returns similar to fixed income and infrastructure assets, but by providing clean energy to eligible commercial properties.
The fund will target systems that are between 20kWh and 100kWh, and provide electricity at prices of between 20-30kWh (depending on customer credit profile, system size and term of contract). Contract terms will vary between 10 and 15 years.
The fund has a commercial arrangement with a "green" energy retailer who will provide pipeline, monitoring, billing and metering and customer management services.

9 years

of track record

2015

the year funded

20,000,000 AUD

AUM

Interested in this fund?
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Asset manager

Clean Energy Crowd Pty

Website

Headquarters location:

SDG goals

SDG targets

Universal access to modern energy

Increase global percentage of renewable energy

Expand and upgrade energy services for developing countries

Full employment and decent work with equal pay

Increase access to financial services and markets

Key performance indicators

Fund overview

Asset manager: Clean Energy Crowd Pty

Product track record: Fund has 9 years of track record

Target IRR: 15%

Committed Capital: 0 AUD (Australian Dollar)

Target return category: Risk-adjusted market-rate of return

Fund domicile:

Product status:

Style/Stage:

Inception year: 2015

Vintage year: 2015

Target region: , , ,

Target close date: 01/09/2015

Product term: Up to 15years term

Assets under management: 20,000,000 AUD (Australian Dollar)

Investment size: Min: 30,000; Max: 200,000; Avg: 60,000

Co-investment policy:

Currency of investments:

Currency for fund / product figures:

Fund investments to date: 0

Fund investments to date exited or repaid: 0

Management fee: 1.8%

Carried interest: 20%

Hurdle rate: 10%%

GIIN Investors' Council Investment: No

Limited Partners / Investors: n.a.

Limited Partner / Investor Type: Development Finance Institution (DFI), Endowments/Foundations, Family Office, Pension Funds, Other Institutional Investors

Contact

E-mail: n.a.

Website: http://www.cleanenergycrowd.com.au

Phone number: +61 400 745 929

If you wish to have your details removed from this database please email gdpr@impactyield.com


Andrew Hoare

Director

Impact Performance

n.a.

Impact thesis

The fund seeks to make an environmental difference by providing funding for solar energy projects to help Small and Medium Enterprises reduce their carbon footprint. The fund also aims to provide finance to local developers and installers in order to increase employment opportunities in the renewable energy industry in Australia.
The annual equivalent impact of the AUD$20,000,000 Solar Fund will be equivalent to providing one of the following benefits:
1. Preventing 3,760 tons of waste being sent to landfill;
2. Preventing 24,396 barrels of oil being consumed;
3. Saving 8,598 acres of forests in on year;
4. Powering 958 homes with clean solar energy for one year;
5. Taking 2,028 cars off the road;
6. Stopping 11,281,774 pounds of coal being burnt.

Impact Management

n.a.

Financial benchmark