Dutch pension fund PGGM invests €200 million in SolarCity’s project portfolio

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Netherlands-based pension provider PGGM has agreed to invest in a large portfolio of PV projects of SolarCity, the solar unit of U.S. electric car maker Tesla. The company has not revealed the sum it will invest in the transaction. Local media report, however, that PGGM will provide SolarCity with around €200 million ($218.6 million) in funds for the projects.

The company said the portfolio consists of around 38,000 solar systems spread across 21 U.S. states with a combined capacity of 275 MW.

“With this investment,” the company stated, “PGGM expects to generate a stable return for the participants of our clients, among them Pensioenfonds Zorg en Welzijn/PFZW (pension fund for the Dutch healthcare sector), for at least twenty years. This return comes from the regular payments by American homeowners for the use of the solar panels installed for them by SolarCity.”

PGGM added that its investments are now covering the entire spectrum of current sustainable energy production and consumption, as it invested in large-scale solar parks in the past, as well as in wind power plants, and it has now entered the residential and commercial PV segments.

The company also said its investments in solar are part of a diversified portfolio of energy assets, and that the direct investment of its unit PGGM Infrastructure has always been to invest in individual projects, “each of which can be seen as a separate piece of the puzzle to improve the sustainability of the energy mix.”

In recent years, the €206 billion pension fund has also invested invested in companies that are involved in the large-scale application of smart meters.

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