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    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
    Image credit DDS
    Dds Solar 63a08f60a80bc

    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.

    About the Author

    EnergyTech Staff

    Rod Walton is senior editor for EnergyTech.com. He has spent 14 years covering the energy industry as a newspaper and trade journalist.

    Walton formerly was energy writer and business editor at the Tulsa World. Later, he spent six years covering the electricity power sector for Pennwell and Clarion Events. He joined Endeavor and EnergyTech in November 2021.

    He can be reached at [email protected]. 

    EnergyTech is focused on the mission critical and large-scale energy users and their sustainability and resiliency goals. These include the commercial and industrial sectors, as well as the military, universities, data centers and microgrids.

    Many large-scale energy users such as Fortune 500 companies, and mission-critical users such as military bases, universities, healthcare facilities, public safety and data centers, shifting their energy priorities to reach net-zero carbon goals within the coming decades. These include plans for renewable energy power purchase agreements, but also on-site resiliency projects such as microgrids, combined heat and power, rooftop solar, energy storage, digitalization and building efficiency upgrades.