Dividend Solar to combine with Figtree, gets $200 million commitment

By Wendy Van Sickle

Columbus, Ohio, June 23 – Dividend Solar, Inc. will merge with Figtree Financing, marking the first ever combination of a residential solar lender and a Property Assessed Clean Energy (PACE) financing provider, and received a commitment of up to $200 million from LL Funds to fuel the growth of the combined entity, according to a press release.

“We are excited to announce our partnership with LL Funds and with Figtree, which will allow our company to expand its financing program to include PACE and to accelerate our nationwide growth,” Eric White, Dividend Solar’s president, said in the release. “We can now offer a suite of products to our customers, creating a ‘one-stop shop’ where commercial and residential property owners can secure the upfront financing they need for renewable energy and efficiency upgrades.”

Dividend Solar’s loans include solar performance guarantees and warranty management. Figtree is a provider of PACE financing for energy efficiency improvements, including solar energy.

“PACE is a unique offering that enables energy projects at an affordable price for customers who might otherwise not have had access to longer term financing,” Mahesh Shah, chief executive officer of Figtree, said in the release, adding that, “It is one of the fastest growing financing products in the space.”

Dividend said that in addition to its existing solar loans, the merger will allow it to also offer PACE financing, allowing property owners to access long-term financing that is repaid through property taxes and does not carry the personal or business credit requirements of traditional loans.

As part of the transaction, Shivraj “Raj” Mundy, operating partner with LL Funds, will join Dividend as its executive chairman.

San Francisco-based Dividend presently operates in 28 states through a network of installation partners. Figtree, based in San Diego, provides financing to accelerate the adoption of environmentally friendly products and services. LL Funds is a Philadelphia-based private investment firm.

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