1867-NELKSI LLC's $9.9 Million Solar Tax Equity Fund Scored E1/80 On Green Transaction Evaluation
S&P Global Ratings has assigned a score of E1/80 to Nelnet Inc.'s $9.9 million solar tax equity fund, the highest possible rating on their scale. The fund targets four photovoltaic solar projects in Upstate New York. Kimberly Garen, the report's author, noted that while these projects contribute to decarbonization, New York's low carbon-intensity grid limits their global ranking. The governance and transparency of the fund are strong, with annual third-party audits for environmental and financial impacts. This evaluation is distinct from credit ratings and focuses on environmental credentials.
- E1/80 score on solar fund indicates highest environmental impact rating.
- Strong governance and transparency measures in place.
- Annual third-party audits will enhance accountability and transparency.
- Low carbon-intensity of New York State's grid limits project ranking compared to more carbon-intense regions.
NEW YORK, March 30, 2021 /PRNewswire/ -- S&P Global Ratings said today in its Green Transaction Evaluation of Nelnet Inc. recent
"These green energy projects sit at the top of our carbon hierarchy as they contribute to systemic decarbonization of the economy," said Kimberly Garen, the primary author of the evaluation. "However, the low carbon-intensity of the regional grid mix in New York State limits the ranking in a global context compared with more carbon-intense regions."
Nelnet issued the 1867-NELKSI solar tax equity fund of
We view the Governance and Transparency to be very strong. All projects selected must qualify for the IRC Section 48 solar tax credit and proceeds cannot be used for other purposes. The projects financed by this transaction were selected and constructed prior to investor participation. The NELKSI Fund is closed and will not add any projects beyond the four disclosed to investors. Additionally, Nelnet intends to submit annual third-party audited environmental impact reports detailing solar production during the reporting period. Investors will also receive annual third-party audited financial reports for 1867-NELKSI.
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SOURCE S&P Global Ratings
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