Genie Energy Ltd. (NYSE: GNE) has closed a $7.4 million fixed rate term loan secured through National Cooperative Bank (NCB) to finance a portfolio of operating solar generation assets. This loan provides project financing for a solar array portfolio rated for an aggregate 10MW, which Genie purchased through its Sunlight Energy subsidiary over the past year. These arrays provide power to educational facilities in three Midwestern states through direct fixed-price solar power purchase agreements (PPAs).
As of September 30, 2024, Genie Renewable's development pipeline comprised two utility-scale projects under construction and an additional 17 projects in various stages of pre-construction development, totaling 96MW.
Michael Stein, CEO of Genie Energy, expressed his satisfaction with the financing of the portfolio, noting that the assets have generated revenue and profitability in line with expectations since their acquisition. He also highlighted the financing provided by NCB as a means to increase the arrays’ return on equity and an essential element of the solar generation strategy within the Genie Renewables division.
Looking ahead, Stein expects to continue utilizing project financing to optimize the company's capital structure, maximize equity returns, increase capacity for new product development, and enhance profitability for projects developed or acquired going forward. The market has reacted to these announcements by moving the company's shares -1.1% to a price of $15.63. If you want to know more, read the company's complete 8-K report here.
