Led by U.S. Bancorp and Mitsubishi, the tax equity and debt commitments are expected to enable the company to support the construction of 49 solar and energy storage projects.
Boston-based community solar developer Nexamp announced it has secured over $400 million in tax equity and debt commitments from U.S. Bancorp Impact Finance and Mitsubishi UFJ Finance Group (MUFG).
The financing arrangement is expected to support Nexamp’s construction of 49 solar and battery energy storage projects spanning six states in the Mid-Atlantic, Northeast and Midwest regions. Over 2,390 construction and operations jobs, often in rural communities, are expected to be created by the project portfolio.
The community solar and storage projects are expected to contribute nearly 250 MW of solar capacity, enough to power up to 40,000 households. Community solar enables customers to opt-in and subscribe to capacity from the project, receiving credits on their utility bills for production from the facility.
Customers of the projects enabled by the financing round are expected to save a combined $6.5 million in annual utility bills, with ratepayers saving an average of 10% to 20% on their traditional utility bills. Nexamp’s business model involves no customer credit checks, up-front fees or long-term commitments.
Rural communities in Maine, Maryland, Massachusetts, New York, Minnesota and Illinois are planned to host the projects, which extend access to solar for customers who are unable to install it on their homes. New York, Massachusetts and Minnesota are notably three of the top five largest markets for community solar, though California, the nation’s top solar market overall, recently passed laws to enable the market, and proposed a $400 million fund to spur growth.
“In order for the U.S. to overcome its reliance on fossil fuels and an outdated power grid, we must invest in affordable and sustainable clean energy solutions that are accessible to all Americans, no matter where they live,” said Zaid Ashai, chief executive officer, Nexamp.
Nexamp said the investment was encouraged by incentives within the Inflation Reduction Act, which in 2023 will begin the rollout of bonus tax credits for projects located in traditionally marginalized communities. Learn more about the 10% Energy Community tax credit here.
“Community solar projects are playing a vital role in the energy transition, providing a diverse set of communities with access to participate in this societal effort,” said Takaki Sakai, managing director, MUFG.
Nexamp will provide development, engineering, construction, operations and customer management services for the entire portfolio. The company first launched its subscriber-based community solar project in 2015, and today services over 60,000 customers with a portfolio of over 1 GW. The developer said its assets are capable of powering over 155,000 households, and it has several more GW of capacity in development across 20 states.
