Posigen, a New Orleans company that specializes in marketing solar energy systems to low-income households, announced Thursday that the international company has increased its investment by $150 million.
This brings Brookfield Asset Management’s total investment in Posigen over the past year to $400 million. Brookfield is an investment firm with more than $925 billion in assets. The company’s assets include commercial office buildings in New York, Toronto and Houston, a portfolio of hydroelectric, wind and solar assets, and the Port of Los Angeles.
“They’re putting money in a lot of different places,” said Benjamin Healy, president of capital markets and strategy at PosiGen. “They see PosiGen as a growing company that is serving a lot of people that no one else is serving.”
Founded in 2011, PosiGen has installed approximately 30,000 solar power systems in 15 states. The business does not offer credit-checked loans, so all households, including those with low credit scores, can benefit from the service. The company said the installation saved homeowners approximately $66 million in utility costs.
The company’s business model relies on tax credits, allowing it to partner with banks and other financial institutions to finance solar panel installations and lease them to homeowners. The main offering is a 20-year, no down payment, no escalation lease, and no minimum credit score or income level is required to qualify.
Brookfield’s investment will allow Posigen to install solar power systems on an additional 30,000 to 40,000 homes, Healy said.
“In a time of great uncertainty, we are lowering monthly expenses for working families,” he said, and investors see this as a good bet.
Connecticut Green Bank, the nation’s first state-wide green bank, has renewed its commitment to PosiGen. Green banks use innovative financing, along with support from the private sector, to accelerate the transition to clean energy. The Green Bank’s support amount is approximately $25 million, which will be used to underwrite loans for solar power generation equipment.
Connecticut is PosiGen’s second largest market after Louisiana. Healy said the company has about 6,000 customers and 125 employees in the state.
Posigen plans to install 12,000 to 14,000 solar power systems in homes this year, representing a 40% to 47% increase over the current number, Healy said.
