IIG Solar Income Fund
The Fund was established to provide wholesale investors an opportunity to invest in an unlisted portfolio of operational solar assets. The Fund’s investment objectives are to deliver attractive returns while providing investors with reliable, tax-effective quarterly distributions, and to generate measurable environmental and social impact by funding renewable energy infrastructure.
It currently owns three operational solar farms, and provided a portfolio of loans to solar assets in the Northern Territory.
Karratha is a 1 megawatt (MW) solar farm located adjacent to Karratha Airport in Western Australia. It was commissioned in early September 2016. The Fund purchased Karratha for $7.2 million in early November 2016. All the electricity generated by Karratha is acquired under a Power Purchase Agreement (PPA) with the City of Karratha, for a term of 21 years with an option to extend (at the Fund’s discretion) for a further 10 years. The electricity produced from the solar farm provides approximately a third of the Airport’s electricity needs.
Mount Majura is a 2.3 MW solar farm located adjacent to Mount Majura Winery in the Australian Capital Territory (ACT). It was commissioned in September 2016. The Fund acquired Mount Majura for $7.4 million in late October 2016. All the electricity generated by Mount Majura is sold at a fixed price in accordance with the ACT’s medium-scale feed-in-tariff scheme. This arrangement is contracted to continue for 20 years from 2016.
Williamsdale is a 11.2 MW solar farm located south of Canberra in the Australian Capital Territory (ACT). Commissioning occurred in February 2017, with the Fund acquiring Williamsdale for $39.0 million in early May 2017. All the electricity generated by Williamsdale is sold at a fixed price in accordance with the ACT’s large and medium-scale feed-in-tariff scheme, for a term of 20 years.
The Epuron Solar loan portfolio was acquired in September 2016 for $5m. The Epuron Portfolio of assets, against which these loans are secured, consists of 10 off-grid utility solar facilities located in the Northern Territory, with a total capacity of 6.87 MW. The Epuron Portfolio is operated, and was developed, by a Sydney-based renewable energy infrastructure company (Epuron) which was founded in 2001. It is owned by Fulcrum Solar Pty Ltd (Fulcrum).
The Fund has a target to deliver investors a pre-tax IRR of 10% in a tax effective manner with low correlation to market and economic conditions. The Fund is led by renewable energy industry expert and IIG Head of Renewable Energy Infrastructure, Lane Crockett. The Fund is overseen by an independent board, chaired by Ross Garnaut AO.