CleanCapital acquires a project portfolio of 40 assets and adds a $145 million investment. Dimension Energy secures a funding package to support 30 community solar projects across seven states. Aypa Power gets financial backing for an energy storage project in Arizona. Learn more about these stories in the latest Solar Financing Spotlight.
CleanCapital has acquired a portfolio of 40 assets totaling 22.7 MW from Kendall Sustainable Infrastructure (KSI), one of the first established institutional owners of community solar projects. The acquisition marks a milestone for both companies and brings CleanCapital’s portfolio of operating and under-construction assets to more than 240 projects totaling over 340 MW. The sale concluded the lifecycle of KSI’s first of three funds dedicated to the space.
Additionally, Manulife Investment Management (Manulife IM), together with its leading institutional co-investors, has increased its equity investment in CleanCapital with a new tranche of funding totaling $145 million.
To date, CleanCapital has committed well over $1 billion to new build and operating solar and energy storage assets since Manulife IM’s initial investment in 2021.
“The growth of data centers and reshoring of manufacturing is driving up electricity demand at rates not seen in decades,” said Thomas Byrne, CEO of CleanCapital. “A rapid ramp-up of solar and energy storage installations is critical to meeting that need for businesses, communities, and consumers. This latest acquisition and infusion of capital shows that our team has the backing and track record to lead in this sector.”
The newly acquired Kendall solar portfolio consists of net-metering and community solar assets that reached commercial operation between 2015 and 2018. The solar assets serve a variety of offtakers, including MUSH, utility, C&I, and community solar subscribers. Of these, 38 are in Vermont, with the remaining two in New York and California.
“KSI was a first mover in this space identifying, financing and building this portfolio years ago,” said John Chaimanis, cofounder and managing director of KSI. “We built our business on the principles of fair dealing, scaling through repetition, and deployment of top-quality equipment.”
Dimension closes $284M loan package for 122 MWdc DG portfolio
Dimension Energy has closed on $284 million construction and tax equity bridge loan to support the construction of a 122MWdc portfolio of 30 community solar projects.
The loan was financed through First Citizens Bank, acting as lead debt syndicator, alongside ING, National Bank of Canada, Comerica, Cadence, Denham, and Siemens. In addition, Dimension closed on a structured equity investment from HASI, in a new project joint venture (JV).
The project portfolio that Dimension is developing is spread across Delaware, Illinois, Maine, New Jersey, New York, Pennsylvania, and Virginia. The portfolio includes the company’s first community solar projects in Illinois and Pennsylvania.
“This significant capital investment is a clear sign that the future of community solar is bright,” said Patrick Schaufelberger, SVP project finance of Dimension Energy. “We’re excited to close another transaction with our existing banking partners and bring on new partners in HASI, Denham, and Siemens that will allow Dimension to enter new markets and bring affordable energy and good jobs to more Americans in 2025.”
The loan closes out what has been a banner year for Dimension’s project finance activities. The company announced its first corporate level revolving facility in September, with Deutsche Bank’s first ever pre-NTP investment in U.S. community solar. In July, Dimension announced that the company will invest a total of $3 billion over the next five years and will have more than 800 MW total in pre-construction-to-operations by end of next year, with 2.8 GW under development across 13 markets, including a 44 MW project in California that is among the largest community solar projects in the state.
Aypa Power secures $398M for BESS project in Arizona
Aypa Power, a Blackstone portfolio company and leading developer and operator of utility-scale energy storage and hybrid renewable energy projects, has announced the successful close of a $398 million financing package for the Pediment Battery Energy Storage System (BESS), a 250 MW/1,000 MWh project located in Mesa, Arizona. The milestone highlights Aypa’s commitment to advancing Arizona’s energy infrastructure as the state looks to more than double its energy capacity by 2035.
The financing package includes a construction-to-back-leverage loan, tax credit transfer bridge loan, and letters of credit. The financing group was led by Société Générale, ING Capital LLC (also serving as green loan coordinator), and Bank of America as the Coordinating Lead Arrangers, with Zions Bancorporation (also serving as Administrative Agent), Royal Bank of Canada, and Desjardins Group acting as Joint Lead Arrangers at financial close.
The Pediment BESS will play a key role in supporting the region’s growing data center market and increasing renewable energy integration. Operating under a 20-year tolling agreement with Salt River Project (SRP), the project is expected to deliver over $16 million in direct economic impact, including $14 million in property tax revenue to Maricopa County during its first 20 years of operation.
“The closing of this significant financing reflects Aypa Power’s ability to execute on large-scale energy storage projects and is a testament to the quality of projects we are bringing to market,” said Bill Nguyen, Executive Vice President of Finance at Aypa Power. “The facility’s innovative structure and backing from diverse, esteemed financial institutions reflect our capital partners’ confidence and ensure the flexibility to advance Pediment’s construction.”
Trent Hazelwood, Director at Société Générale, said, “Société Générale is honored to partner with Aypa Power and fellow lenders on this important project. The Pediment BESS will play a pivotal role in strengthening the reliability and flexibility of renewable energy systems for Maricopa County and Arizona, advancing the region’s clean energy future.”
“Pediment represents a well-structured financing for a top-tier battery energy storage project,” added Sven Wellock, Managing Director and Lead of Energy – Renewables & Power for ING Capital. “ING is proud to have played a leading role in supporting this effort and contributing to Aypa Power’s continued growth and success.”
“Amid rising power demand, energy storage is critical for ensuring reliability during the transition to a lower-emissions grid,” said Omer Farooq, Managing Director in the Global Sustainable Finance Group at Bank of America. “This transaction supports Aypa Power’s efforts to deliver much-needed capacity to Arizona’s energy market.”
With financing in place, the Pediment BESS is on track to meet key construction milestones, with operations expected to begin in 2026.
Convergent closes $150M financing for energy storage project pipeline
Convergent Energy and Power has closed a programmatic construction-to-term loan, tax equity bridge loan, and letter of credit facility with Mitsubishi UFJ Financial Group (MUFG). The funding will provide capital for Convergent to accelerate construction of its distributed energy storage and solar PV portfolio across North America.
The facility is structured such that Convergent will receive funding for its near-term distributed-scale systems as the company breaks ground on hundreds of millions of dollars of additional energy storage and solar PV systems. The initial facility anticipates $150 million in funding and provides a framework for future financing rounds as Convergent adds to its existing pipeline of over $1bn in opportunities.
“This construction facility ensures that we will continue to be a leader in providing cheaper, cleaner, and more reliable energy to businesses and utilities,” said Convergent’s CFO and Co-Founder, Frank Genova. “Distributed generation assets are integral to the clean energy transition and provide critical infrastructure to modernize our aging power grid. We applaud MUFG for recognizing the strength of Convergent’s platform and look forward to expanding our partnership in the years to come as we meet the growing demand for more cost-effective, reliable, clean energy solutions—particularly battery storage.”
Convergent has more than a decade of expertise financing and managing all aspects of the energy storage development cycle to help customers reduce electricity costs and increase reliability. The company’s industrial and utility-scale assets can yield seven-figure savings while advancing the clean energy transition.
“Convergent has emerged as a leading platform in the clean energy transition through its ability to get systems built efficiently and cost-effectively,” said Fred Zelaya, Managing Director, MUFG. “As demand for electricity rises, distributed generation assets, like battery storage, will support the delivery of clean, reliable power. We’re proud to offer a customized and long-term financing solution to Convergent as it continues its strong track record of bringing critical energy storage solutions online.”
Convergent has over 800 MW / 1 GWh of energy storage and solar-plus-storage systems operating or under development and over $1bn invested in or committed to systems in operation or under development.
Tags: energy storage, Financing
