Solar Landscape set a new annual record for solar project financing. Avantus signed a PPA for project in Arizona. SolarEdge closed its energy storage division. These are the stories we’re highlighting in the latest Solar Financing Spotlight.
Solar Landscape raised an annual company record $847 million in project investment and financing in 2024. The financing will allow the C&I rooftop developer to deploy more than 200 installations across the United States. The company also announced that in 2024 it signed contracts for 40 million square feet of additional commercial and industrial rooftop space to develop solar projects.
Solar Landscape partnered with 10 investors and financing counterparties in 2024 to raise $847 million in proceeds from debt, equity, and tax equity to execute on its ambitious growth agenda.
KeyState Renewables committed, through two investment vehicles, to invest $184 million in tax equity toward commercial solar projects developed by Solar Landscape. KeyState Renewables is coordinating several regional banks as tax investors in the tax equity portfolio. Proceeds from the tax equity commitment will finance the operation of 101 solar projects for well over 100 MW of capacity, all developed and owned by Solar Landscape. The projects will span more than 8.5 million square feet of commercial and industrial rooftops.
Silicon Valley Bank, a division of First Citizens Bank, led a $283 million green loan with social co-benefits for commercial rooftop solar projects. Silicon Valley Bank, KeyBanc Capital Markets and National Bank of Canada were coordinating lead arrangers, which also included an array of institutional investors and participating banks. National Bank of Canada was the green structuring agent on the loan, which supports Solar Landscape’s significant investment into communities through workforce development and equitable access to clean energy.
Prologis, the global leader in logistics real estate, announced in September its partnership with Solar Landscape to develop and finance more than 30 million square feet of commercial rooftop solar projects. Solar Landscape is developing commercial rooftop solar projects across the country in support of Prologis’s goal of deploying 1 gigawatt of on-site solar and battery storage by 2025.
In October, Walmart announced its investment in 74 Solar Landscape commercial rooftop solar projects in Maryland and Illinois. The commercial rooftop portfolio will create nearly 43 megawatts of solar capacity, enhancing grid infrastructure and expanding access to affordable clean energy.
As U.S. energy demand surges from the growth in AI machine learning, data centers, and electrification of the economy, corporations and regulators are increasingly looking to distributed generation (DG) for its deployment speed and grid benefits. DG solar projects can typically be developed and built in 12 to 24 months given faster interconnection times and modular setups.
In 2024 Solar Landscape leased an unprecedented 40 million square feet of commercial rooftop space across the United States. The 40 million square feet will require an additional $1 billion-plus in project financing and will serve as the foundation for 500 MW of solar capacity. Solar Landscape now has more than 80 commercial real estate partners that collectively own over 2 billion square feet across the United States.
“The surge in U.S. grid energy demand makes commercial rooftops ideal for solar,” said Shaun Keegan, CEO and cofounder of Solar Landscape. “At Solar Landscape, we’ve led the design-build process for these projects since 2012, standing apart by being vertically integrated and forming lasting partnerships with real estate clients. We began as a construction company and we’ve built a reputation for delivering on our promises and fostering genuine relationships with our partners.”
Avantus inks PPA for Kitt Solar Project in Arizona
Avantus signed a power purchase agreement with Arizona Public Service (APS) for the Kitt Solar Project. Located in Eloy, Arizona, the project features 100 MWac / 130 MWdc of solar and 400 MWh of energy storage. Avantus will complete development and start construction of the project in 2025, with operations expected to begin in 2026.
“Avantus’ agreement with APS will expand the availability of clean and reliable energy in Arizona and is a testament to our leadership in developing high-quality renewable energy projects,” said Avantus CEO Cliff Graham. “The Kitt Solar Project will not only deliver clean solar energy and offset carbon emissions but will provide much needed energy storage capacity to meet rising demand and create a more resilient grid in Arizona.”
Kitt is expected to create up to 400 construction jobs and generate local tax revenues to benefit local services, such as schools, public safety and infrastructure throughout its operating life.
The combination of solar and energy storage capacity will play an important role in supporting the resiliency of the electric grid in Arizona and ensuring the state can meet peak demand amid extreme heat conditions. In 2024, Arizona saw 113 consecutive days of temperatures at or above 100 degrees Fahrenheit, which also broke demand records for electricity.
“Over the next several years, customer peak energy demand in Arizona is expected to grow significantly,” said Derek Seaman, APS director of resource acquisition. “The Kitt Solar Project will add to our growing solar power and energy storage portfolio and provide our customers with additional reliable, cost-competitive and clean electricity.”
SolarEdge shutters energy storage division
SolarEdge Technologies Inc. is ceasing all activities related to its energy storage division. This decision will result in a workforce reduction of approximately 500 employees, most of whom are in South Korea.
The company announced the reason for the decision was to focus on its core solar activities. The expected quarterly operating expenses savings due to the closure are approximately $7.5 million with the full run rate expected to be achieved by the second half of 2025. The company intends to sell the assets related to the storage division activities including its manufacturing facilities for battery cells and packs. This does not impact the solar business sale of batteries for residential and C&I markets.
“The decision to close our energy storage division was the result of a thoughtful analysis of our portfolio of businesses and product lines, industry trends, and the competitive environment,” said Ronen Faier, interim CEO of SolarEdge. “The measures also represent continued execution of two of our main priorities, financial stability through cost reduction, return to cash flow positivity and profitability, and focus on our core business lines of solar, PV-attached storage and energy management capabilities.”
Tags: Financing
