Sunrock, CleanCapital to deploy solar + storage solutions | Solar Financing Spotlight
Sunrock and CleanCapital have teamed up to develop solar + storage projects in the United States, while First Citizens Bank helped finance $315.7 million in battery energy storage projects in Texas. Read about these stories and more in the latest edition of the Solar Financing Spotlight.
Sunrock Distributed Generation (SDG) and CleanCapital have entered into a strategic partnership to develop, finance and manage ongoing portfolios of distributed generation assets in local communities throughout the United States.
The solar and storage projects deployed in this partnership will be originated and developed using Sunrock’s proprietary underwriting system and technology platform. The platform removes pre-existing barriers that have prevented many high-quality small and medium-sized organizations from accessing funding for renewable energy projects.
Sunrock Distributed Generation CEO Wilson Chang said the partnership “will enable us to help many more local businesses, public entities and nonprofits” access renewable energy. He described these groups as having “historically been overlooked and underserved by the finance industry.”
“This partnership will significantly increase the financial resources available to these groups to cut their energy bills, build power grid resiliency, and reduce carbon emissions in local communities,” Chang added. “Together with CleanCapital, we are committed to making clean, renewable energy accessible and affordable for all.”
Last year, CleanCapital secured an additional commitment of up to $500 million from Manulife Investment Management to bolster its capacity to invest in solar and storage development and expand its partnerships in new markets across the United States.
“Our partnership with Sunrock marks an exciting step in deploying behind-the-meter solar assets, which are not only economically attractive but also instrumental in bringing clean energy directly to local communities,” said Winston Chen, senior director, investments and capital markets of CleanCapital. “By combining Sunrock’s development expertise with CleanCapital’s funding capabilities, we are accelerating the nation’s energy transition where it matters most.”
First Citizens Bank aids $315.7 million in financing for energy storage projects in Texas
First Citizens Bank today announced that its Energy Finance business served as co-lead arranger on $315.7 million of financing for four battery energy storage systems in Texas.
The projects, which collectively represent 730 MW / 1,049 MWh of capacity, are being developed by an affiliate of UBS Asset Management’s Energy Storage Investment Fund I. Commercial operation of all four battery storage projects is expected later this year.
Battery energy storage systems are increasingly seen as a key component for supporting grid stability and reliability, as well as for maximizing the value of renewable power generation. First Citizens Energy Finance has long been recognized as a leader in structuring battery storage financings.
“We see expanding opportunities for battery storage systems, such as these four projects in Texas, to support the reliability and cost-effectiveness of clean energy sources,” said Ken-Ichi Hino, co-head of the Energy Storage investment strategy at UBS Asset Management. “We greatly appreciated the industry knowledge and expertise of First Citizens Energy Finance in helping arrange this financing.”
First Citizens Energy Finance leverages its deep industry knowledge and expertise to offer comprehensive financing solutions for renewable and conventional power generation. The unit manages a large, diverse portfolio that includes investments in all asset classes across the energy sector.
“These four battery projects represent a significant addition to the battery energy storage capacity of the Texas electrical system,” said Mike Lorusso, who heads First Citizens Energy Finance. “We were pleased to serve as co-lead arranger for these important projects and to work closely with UBS to deliver a successful financing.”
Origis Energy closes on $71 million in financing for 75 MW project in Florida
Origis Energy, one of America’s leading renewable energy and decarbonization solution platforms, today announced the close of $71 million in tax equity financing with U.S. Bank subsidiary U.S. Bancorp Impact Finance, one of the most active renewable energy investors in the nation, for Rice Creek Solar in Florida.
Rice Creek Solar is a nearly 75 MWac project in Putnam County, FL., contracted with the Florida Municipal Power Agency (FMPA) for 12 of their participating member municipal utilities.
“U.S. Bank’s expertise and commitment to the renewable energy market is helping us realize our large solar portfolio. Rice Creek is another example of their support empowering us to scale effectively and bring clean energy projects online,” said Vikas Anand, Chief Executive Officer, Origis Energy. “We applaud FMPA for adding more cost-effective energy resources to meet the growing electricity demand of millions of Floridians, and U.S. Bank for supporting the project.”
“Working with Origis and bringing multiple products to bear is another example of U.S. Bank’s commitment to financing the energy transition,” said U.S. Bancorp Impact Finance Senior Vice President Eric Barr. “We look forward to seeing this project come to fruition to expand clean energy in the state of Florida.”
Latham & Watkins represented Origis Energy in the transaction, with Akerman LLP serving as Local Counsel. Sheppard Mullin acted as U.S. Bank’s Counsel, with Balch & Bingham serving as Local Counsel.
Rice Creek Solar is the third solar site in the Florida Municipal Solar Project, one of the largest municipal-backed solar projects in the U.S. At 74.9 MWac, it consists of 213,000 solar panels generating enough clean power for approximately 14,000 homes. Origis Energy is the builder, owner, and operator of the project. Completion of the project is imminent.
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