Aviva in ‘UK’s largest residential solar deal’

The investment arm of the insurance giant has bought a 23MW portfolio of residential photovoltaic systems from HomeSun Holdings. Aviva said the renewable deal was ‘one of many we have planned’.

Aviva Investors, the investment arm of insurance giant Aviva, has just concluded the “UK’s largest residential scale renewable transaction,” the firm announced in a statement today.

The deal sees Aviva Investors buy a 23-megawatt portfolio of residential photovoltaic (PV) assets from residential solar developer HomeSun Holdings for an undisclosed amount. The assets are spread across 7,000 homes.

“This strategic investment in UK renewables is one of many we have planned and is part of our strategy of investing in high-quality renewable energy infrastructure assets,” commented Ian Berry, fund manager, infrastructure & renewable energy, at Aviva Investors. 

Aviva added this was “the first time a major financial institution has procured UK residential PV assets on this scale”.

HomeSun installs residential panels and maintains them free of charge to UK homeowners. In exchange, the company receives the feed-in-tariff the government would pay the homeowners. “Our plan has always been to find a long-term partner that will continue to provide security to our customers whose systems will be managed and monitored for 25 years,” explained HomeSun chief executive Daniel Green.

Aviva Investors, via one of its funds, recently acquired a €200 million portfolio of project finance loans from Bank of Ireland for 81 percent of its value. In late May, Aviva Investors’ subordinated debt fund with Hadrian’s Wall Capital reached a first close on £160 million (€202 million; $250 million). Aviva Life & Pensions UK was one of the fund’s cornerstone investors.