A new utility-scale solar investment fund valued at $500 million is seeking institutional investors.
The new San Francisco-based fund, called New Energy Capital Management, will invest in large (utility-scale) solar power-generating plants located in California and other sunny geographical areas. A typical plant will produce more than 20 megawatts of electricity, which will then be sold to utilities based on pre-negotiated long-term agreements.
“This provides pension plans a stable, dependable, conservative investment that is neither volatile nor correlated to the stock market, thereby allowing pension fund administrators peace of mind and security,” according to a release announcing the fund.
New Energy Capital Management requires a minimum investment of $25 million per pension fund. Investor equity will account for 10% to 15% of the fund value, while bank financing will provide 85% to 90% of the balance required.