In this edition of the Solar Financing Spotlight, we highlight GS Power Partners securing $22 million to build out a community solar portfolio in New York, while Dimension Energy has increased its credit facility to support the development of its 3.5 GW community solar portfolio. Meanwhile, DSD Renewables and Ecofin are making waves in the distributed generation sector. We cover all this and more in the paragraphs ahead.
GS Power Partners (GSPP), a leading Independent Power Producer in the distributed generation (DG) solar sector, has secured a $22 million term financing commitment from Amalgamated Bank. The financing package encompasses five GSPP community solar projects in New York, totaling 25.5 MWdc.
The partnership between GSPP and Amalgamated Bank covers five community solar projects. East Road North and East Road South in Lowville, New York are anticipated to commence operations in the next month. The three other projects include Little Bow North and Little Bow South in Gouverneur, New York, which were completed in December 2023, and the Fox Road project in Marcy, New York, which was completed in May 2023. In total, these five projects will generate more than 25 MW of clean energy annually.
“These community solar projects are a great example of how public-private collaboration can grow the clean economy and make a difference in people’s lives,” said Bill Peterson, director of climate lending at Amalgamated Bank.
Dimension Energy upsizes corporate credit facility to $300M
Dimension Energy has increased its corporate credit facility to $300 million. The facility, co-led by Deutsche Bank and Nuveen Energy Infrastructure Credit, grew from $150 million to a total commitment of $300 million. Deutsche Bank’s Trust and Agency services team is acting as administrative agent and collateral agent for the transaction. The facility will further the deployment of Dimension’s 3.5 GW community solar pipeline.
“This expanded facility will finance a significant portion of Dimension’s near-term development and pre-construction activities,” said Ryan Liddell, CFO, Dimension Energy.
Dimension Energy is actively developing community solar projects in 13 states and is on track to have 800 MW of assets spanning pre-construction to operational by the end of 2025. The company’s continued growth comes on the heels of the U.S. community solar market’s best year yet in 2024.
As the U.S. power grid experiences the largest demand growth since World War II, distributed generation, which has a shorter development timeline and is closer to energy load, is an increasingly important part of the energy mix needed to provide reliable, affordable options to ratepayers.
The initial $150M close of the credit facility, announced in September 2024, was Deutsche Bank’s first pre-NTP investment in community solar in the United States.
DSD Renewables closes $140M in tax equity to support DG assets
DSD Renewables has closed a $140 million tax equity investment from Morgan Stanley Renewables Inc., structured to utilize the new tax credit transferability provisions introduced by the Inflation Reduction Act of 2022 (IRA).
Marking a significant milestone for DSD, this is the first time it will transfer tax credits to corporate buyers. The transaction is also among some of the first tax equity transactions leveraging these new financial tools to support distributed generation assets, and Morgan Stanley Renewables Inc. will retain a portion of the tax credits. This investment will support power purchase agreements (PPA) and community solar projects in markets across the Northeast and in California and Illinois.
“These kinds of transactions further demonstrate the positive impact the IRA has had on renewable energy financing,” said Hannah McGovern, VP of structured finance at DSD. “The ability to transfer tax credits has created a more accessible tax equity market for solar project investment, helping accelerate the adoption of clean energy solutions across the country. While the structure of these deals will continue to evolve, we expect to see more of these transactions close in the near future.”
Norton Rose Fulbright represents Ecofin in solar project portfolio sale
A cross-border team of lawyers from Norton Rose Fulbright represented Ecofin US Renewables Infrastructure Trust PLC on the sale of a portfolio of distributed solar generation projects in the United States to True Green Capital Fund IV for $54.5 million, including a closing payment of approximately $37.1 million in cash and the assumption of approximately $15.7 million in debt.
The distributed generation portfolio has an aggregate net capacity of 63.68 MWdc and is comprised of 62 solar PV facilities located in five different power markets across six states. It is fully contracted with several power purchase agreements with an average remaining contract term of 16 years.
Representing approximately 36% of the company’s total portfolio of 176.9 MW generating capacity, this sale is the first to be signed as part of the company’s managed wind-down that was announced in September 2024. The deal was signed on Dec. 12, 2024, and closed on March 10.
Arevon completes $509M financing package for Missouri solar projects
Arevon Energy Inc. completed a $509 million financial close for the 430 MWdc Kelso 1 & 2 Solar projects in Scott County, Missouri. This transaction represents the company’s eighth project financing in the last 18 months, totaling more than $3.7 billion of funding.
Arevon developed and will build and operate the two-phase Kelso Solar facilities, which are the company’s first utility-scale renewable energy projects in Missouri. Kelso Solar will generate a host of economic benefits in Scott County and surrounding parts, including the creation of an estimated 450 jobs during peak construction to build the project. This surge in activity will positively contribute to the local economy with increased spending at area stores, hotels, and restaurants. When operational, Kelso Solar will disburse more than $34 million to local governments over its multi-decade lifespan, which will support schools, infrastructure, and vital services.
Kelso 1 & 2 Solar’s $509 million financing package is comprised of a $245 million bridge loan, a $172 million construction loan, and $92 million of credit support. Canadian Imperial Bank of Commerce (CIBC) was the Administrative Agent, Left Lead Arranger, and Bookrunner. CIBC, Commerzbank, Commonwealth Bank of Australia, Lloyds Bank, and National Bank of Canada served as the projects’ lenders, Coordinating Lead Arrangers, and Green Loan Coordinators while BNY acted as the Collateral Agent. Sponsor Counsel was provided by Amis, Patel & Brewer, LLP, Lender Counsel by Milbank LLP, Local Counsel by Husch Blackwell, and Lender Local Counsel by BCLP.
Arevon is expanding its presence in the Midwestern region of the United States. In addition to the Kelso 1 & 2 Solar Projects, the company is currently constructing four solar projects totaling 744 megawatts in Indiana with capital costs of more than $1.1 billion and has a robust development portfolio of assets in this key market.
“Utility-scale solar projects are essential contributors in strengthening the American economy through the creation of competitive-wage jobs, local tax revenue, and other steady, reliable benefits that enhance communities,” said Kevin Smith, CEO at Arevon. “Kelso Solar will add resilience and security to America’s energy infrastructure, and Arevon looks forward to advancing our development activities in America’s Heartland.”
First Citizens Bank leads $133M financing for Cypress Creek project in Texas
First Citizens Bank’s Energy Finance business served as lead arranger on approximately $133 million in financing on behalf of Cypress Creek Renewables to support the development of the Destiny Storage project, a utility-scale, standalone battery energy storage system in Texas.
Cypress Creek Renewables is a leading renewable energy developer and independent power producer. Destiny, the standalone battery energy storage project, is now under construction in Harris County, Texas. When completed in early 2026, it is planned to have a 200 MW storage capacity, contributing to the state’s grid stability and renewable energy storage capacity.
“This pivotal investment marks a significant milestone in our mission to drive the transition to cleaner, more reliable energy,” said Sarah Slusser, CEO of Cypress Creek Renewables. “With this funding, we are poised to accelerate the deployment of cutting-edge energy storage solutions, helping to stabilize grids, reduce carbon emissions, and empower communities with sustainable energy.”
Adapture acquires 110 MW solar + battery project in Colorado
Adapture Renewables Inc. has acquired a hybrid 110 MW solar and 110 MW battery energy storage project from Samsung C&T Renewables, the renewable development and investment platform of Samsung C&T America. As Adapture Renewables’ first project in Colorado, the acquisition of this system strategically positions the company in the western region and represents a significant expansion of its pipeline of hybrid facilities.
Located in Colorado, a state committed to achieving 100% clean electricity generation by 2040, the project is ideally positioned to meet the diverse power needs of the state’s rapidly growing demand. Pairing solar with battery storage offers opportunities for grid stability support, peak shaving, and enhanced efficiency.
As the Haynach project progresses, Adapture Renewables is dedicated to transparent communication and collaboration with the local community and stakeholders and is committed to providing updates on the project’s development. Haynach Solar is expected to be operational by 2029.
SolaREIT expands credit facility to $60M to fuel growth
SolaREIT has expanded its revolving credit facility to $60 million through an increased commitment from Atlantic Union Bank and the syndication to EagleBank. Atlantic Union Bank served as the sole book runner and administrative agent for the facility, leading the structuring and syndication efforts.
This marks the third upsize of the facility in less than two years, reflecting growing confidence in SolaREIT’s business model and the increasing demand for solar and storage land financing solutions. The facility provides the solar and battery storage investment firm with additional capital to meet growing demand from solar and battery energy storage developers. The company’s financing solutions help developers and landowners maximize the value of their real estate assets while advancing clean energy deployment.
“As the clean energy transition accelerates, developers need reliable, flexible financing solutions,” said Laura Klein, CFO of SolaREIT. “This increased capital allows us to continue scaling our support for solar and storage projects across the country.”
Tags: Community Solar, distributed generation, Financing, utility-scale
