Sunlight gains $300m in capital for rooftop PV financing products

Start-up Sunlight Financial has closed access to $300m of capital investments to grow its business providing lower-cost, long-term loans to finance installation of residential rooftop solar systems.

Lead investor Tiger Infrastructure Partners and founding investor Hudson Clean Energy Partners provided $80m of “growth” capital, with the remaining $220m coming from different financial institutions with strong track records investing in the solar sector.

This includes a new senior secured credit facility of up to $120m, led by CIT Energy Finance and designed for longer-term loan products.

“We are pleased to welcome Tiger as our partner. Tiger’s involvement will catalyze Sunlight’s next phase of success as a standalone and independently capitalized industry player,” says Neil Auerbach, chief executive of Hudson and founder of Sunlight.

Tiger will be the majority equity holder and control the board of Sunlight. Auerbach will become executive chairman of Sunlight.

Sunlight offers its financing products to market-leading installers and large equipment distribution companies (channel partners). They originate installations with homeowners, who typically choose to install a rooftop solar system to save on their utility bill.

The company’s strategy is to grow with several installers by providing cost-effective capital and robust service offerings, enabling it to scale quickly while minimizing customer acquisition costs and overhead.

“Tiger’s decision to invest in Sunlight is the culmination of our search in the residential solar sector for the best in class platform and partners,” says Emil W. Henry, Jr, managing partner of Tiger.