Spruce and Investec Close $120M Loan for US Home Solar Financing
The $120 million loan demonstrated market interest in Spruce’s business and growth.
By Anca Gagiuc, Associate Editor
The credit facility will support the growth of Spruce’s solar photovoltaic lease and power purchase agreement business
San Francisco—Spruce Finance Inc., a provider of consumer financing for residential solar and home efficiency improvements in the U.S. backed by Kleiner Perkins Caufield & Byers LLC, announced that it closed a $120 million syndicated credit facility that will support the growth of its solar lease and power purchase agreement (PPA) business.
This is the company’s first syndicated loan and it was led by London-based Investec.
“Our residential solar lease and PPA, solar lending, and efficiency lending businesses are growing more than 50 percent so far this year, compared to 20-30 percent average growth in the residential solar industry,” said Nat Kreamer, CEO of Spruce. “The capital markets have responded positively to that growth, and we expect to raise more financing for our solar and efficiency businesses from a variety of sources this year.”
San Francisco-headquartered Spruce is the result of the 2015 merger between Clean Power Finance Inc. and Kilowatt Financial LLC, another Kleiner Perkins-backed solar financing company. It specializes in financing for residential solar, water-conservation upgrades and energy efficiency projects. Other investors include Google Ventures, Edison International, Duke Energy, ADIA and Claremont Creek Ventures.
“Spruce is building a sustainable business that brings value to all stakeholders,” said Dan Oros, partner at Kleiner Perkins Caufield & Byers (KPCB) and member of Spruce’s board of directors. “The Investec raise allows Spruce to grow alongside its channel partners.”
Image courtesy of Spruce
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