SunEdison’s Terraform acquires $250 m US solar projects

SunEdison hq

TerraForm Power, the company operated by SunEdison will pay $250 million to Capital Dynamics U.S. Solar Energy Fund LP for solar projects in five U.S. states, reports STL Today.

TerraForm will buy the 39 projects with a total capacity of 77.6 megawatts in California, Massachusetts, New Jersey, New York and Pennsylvania.

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The purchase will be using debt financing through a $275 million increase in an existing term loan, according to Terraform officials.

During its July initial public offering TerraForm raised $501.6 million in to become yieldco.

SunEdison hq

Commonly, renewable-energy developers adopt this way to raise capital at lower costs by selling projects to their yieldco, using the proceeds to fund additional plants.

The transaction is expected to close in the fourth quarter.

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In a recent development,SunEdison has started solar material production using its poly-silicon technology to lower costs of solar equipment.

This is a revolutionary technology in solar field, which will enable SunEdison to deliver a 400 watt solar panel at a cost of $0.40 per watt by 2016.

Sabeena Wahid
[email protected]