Macquarie joins forces with Freetricity Solar to accumulate a portfolio of rooftop solar photovoltaic systems
01 Aug 2013
Macquarie has teamed up with Freetricity Solar (Freetricity) targeting an initial £50 million portfolio of rooftop solar photovoltaic systems in the UK.
An experienced solar developer, Freetricity will install solar systems on rooftops across the UK, with the systems acquired by a wholly-owned subsidiary of Macquarie upon completion. Freetricity will also maintain the solar systems once in operation.
The systems will generate stable 20-year inflation-linked income through the Feed-in-Tariff subsidy scheme offered by the UK government. Homeowners will benefit from having access to the electricity produced by the systems at no cost.
Macquarie worked closely with Freetricity to develop a synergistic relationship bringing together Macquarie's flexible capital base and structuring capabilities with Freetricity's expertise in solar development, installation and management. Macquarie is committing debt and equity capital in a structure that provides certainty of funding to support Freetricity's development and offers the flexibility to draw down funding on an as-needed basis.
This transaction underscores Macquarie's commitment to the renewable energy sector and in special situations using both debt and equity capital.