New contracts to install PV panels will take total number of houses covered to 220,000
Eaga is set to sign new contracts to install solar photovoltaic panels in up to 100,000 homes, as future parent company Carillion expands into the green energy sector.
The exact details of the organisations the deal relates to have been closely guarded by the firm but include a large social housing organisation in London, which has already approved the deal internally. Another housing association set to approve the deal next week.
The new contracts are a continuation of Eaga鈥檚 plans to sign up 320,000 homes by the end of the year. Deals have already been signed covering 120,000 homes, the bulk of which will be delivered by a special purpose vehicle, which secured a 拢300m financing package last week.
While the size of the deal looks big, typically only 20% of the houses are suitable for the panels, which would mean that up to 64,000 homes could qualify.
Under the terms of the deal, Eaga will invest 拢15m in the equity portion of a special purpose vehicle, while HSBC and Barclays infrastructure funds will each invest 拢30m.
Debt financing of 拢225m will be provided by a syndicate of five banks.
The initial financing package covers the installation of panels on 30,000 homes, so signing the new contracts could double its size. Eaga will install the PV systems and also provide aftercare services for the SPV.
John Swinney, Eaga鈥檚 group strategy director, said: 鈥淚t took a long time but we are the first to do something on this scale.鈥�
Carillion launched a 拢306m takeover for Eaga last month and is 鈥渉ighly supportive鈥� of the deal.
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