Ares and IGS Ventures Mobilize $150 Million for Third Residential Solar Expansion Initiative

Ares Management Corporation, operating through its Infrastructure and Power division, alongside IGS Ventures, has unveiled the completion of a significant $150 million funding round dedicated to IGS Resi Solar III, LLC. This development marks a pivotal expansion for both organizations’ joint residential solar investment program.

Building Scale Across Nine States

The newly funded Solar III vehicle will finance approximately 4,000 residential solar installations across multiple states, each backed by 25-year power purchase agreements or lease structures. Combined with its predecessor investment vehicles, the collaborative Solar Platform has now accumulated approximately $450 million in total capital commitments, positioning itself to develop an aggregate portfolio of roughly 11,000 residential solar projects spanning nine states with a combined capacity of approximately 100 megawatts.

Financing Structure and Banking Partners

Alongside the equity raise, Ares and IGS executed a seven-year $146 million senior secured financing arrangement with IGS Resi OpCo II, LLC, the operating entity overseeing the consolidated Solar Platform. The financing package comprises a $140 million term loan facility and a $6 million letter of credit facility. ING Capital LLC served as the Coordinating Lead Arranger and Administrative Agent, with Silicon Valley Bank and Bank United participating as additional lenders. U.S. Bank and affiliated investors further committed $50 million in tax equity support to a Solar III subsidiary.

Market Opportunity and Strategic Perspective

Andrew Pike, Partner and Co-Head of Ares Infrastructure and Power, emphasized the significance of this milestone, noting that the successful execution of Solar III reflects the institutional strength underlying the Ares-IGS partnership. Pike highlighted how the venture positions itself to capture the expanding residential solar market by delivering essential deployment infrastructure and operational expertise.

Mike Gatt, Chief Operating Officer of Distributed Generation at IGS, underscored the sector’s potential for sustainable energy adoption at household levels while maintaining cost-effective economics. The partnership model enables accelerated solar deployment across residential markets, allowing homeowners to capture both environmental benefits and financial savings through distributed generation systems.

Industry Endorsement and Capital Commitment

U.S. Bancorp Community Development Corporation, managing $32.7 billion in tax credit equity commitments, affirmed its support for residential solar infrastructure development, recognizing the sector’s role in job creation, environmental stewardship, and community economic advancement. This capital commitment reflects broader institutional confidence in the residential solar sector’s trajectory as a cornerstone of the renewable energy transition.

Ares Infrastructure and Power has deployed over $8.5 billion across more than 140 investments spanning climate infrastructure, natural gas generation, and energy transportation assets. IGS operates across nearly 1.5 million customer relationships nationwide, providing natural gas, electricity, and solar solutions. This collaboration represents a convergence of capital deployment capability and operational distribution networks designed to scale residential solar adoption across American markets.