Energy storage startup raises $155M to support C&I Solar securitization

Dec. 19, 2022
The company’s securitization portfolio is made up of about 44% community solar and 56% onsite solar, including C&I and distributed generation projects across 11 states. DSD is backed by BlackRock and GE

New-York based energy storage solutions provider DSD Renewables has secured a debt financing of $155 million for its first commercial and industrial (C&I) solar asset-backed securitization (ABS).

“This transaction is an important step in DSD’s mission to accelerate the deployment of renewable energy,” says Jamie Hutson, DSD’s Chief Investment Officer. “We have established a path to market for a substantial inclusion of community solar, which will enable access to clean, affordable energy for a larger pool of customers.”

DSD says it worked closely with investors and agencies to better understand community solar revenue structures and to assess risk through a data-driven approach. “This process will streamline DSD’s next issuances, and serve as an emulative industry model for other issuers to bring community solar assets to the debt capital market”, it adds.

The company’s ABS portfolio is made up of about 44% community solar and 56% onsite solar, including C&I and distributed generation projects across 11 states.

It plans to use the net proceeds from the transaction to support its business growth on the project origination and acquisitions front and pay down existing debt on its assets.

To date, the energy firm has raised more than $1.5 billion in funding to support its growth and accelerate solar project deployment. It now plans to issue asset-backed securities every six to twelve months.

“As a first-time issuer within a newer asset class, it was critical that we considered all relevant risk and strategized with agencies, consultants and our bankers to ensure an optimal outcome,” says Ian Manchester, DSD’s Vice President of Structured Finance. “With our first securitization under our belt, we look forward to future issuances which will continue to drive commercial solar adoption and widen access to community solar projects.”

Credit Suisse acted as sole structuring agent and sole bookrunner for this transaction. Sidley Austin and Mayer Brown served as counsel to DSD and Credit Suisse, respectively.

DSD is a business backed by BlackRock Real Assets' Global Renewable Power platform and GE Renewable Energy.

The startup already has helped develop solar projects in California, Hawaii and New York.