Sun Financial and Kenyon Energy have announced the sale of an approximately 33-megawatt distributed generation (DG) solar portfolio to a closed-end fund, Tortoise Energy Infrastructure Fund (TYG).
“We view renewable energy as an increasingly critical component of the energy value chain, and we have an experienced team focused solely on private renewable energy and infrastructure investments,” said Matthew Sallee, portfolio manager and president of TYG. “We are enthused about this investment in long-lived, stable assets with long-term contracts and high-quality counterparties to generate predictable cash flows and risk/return potential similar to our current MLP investments. Additionally, we believe that our proactive approach to managing taxes through solar investment tax credits will be accretive to our stockholders.”
Financial terms were not disclosed; however, as part of the transaction, Sun Financial retained rights to buy back into the portfolio of solar projects that will provide electricity to various university and municipality customers in the state of New York.
Bay4 Energy Services has been selected to provide ongoing asset management and O&M services.