The company closed financing for a solar project that is expected to generate enough electricity for the equivalent demand of 160,000 homes.
Vesper Energy, a solar project developer, owner and operator of utility-scale assets, announced the close of $590 million in financing for the development of a Texas solar project.
The Hornet Solar project is a 745 MWdc project in Swisher County, Texas, generating enough electricity for the equivalent of about 160,000 homes annually.
Blattner Energy is constructing the project, which is selling its power to four large offtakers via a power purchase agreement. The project began construction in the Fall of 2023 and is planned to be operational as soon as January 2025.
Vesper Energy said the project will deliver renewable energy to communities throughout Texas, provide grid stability, and mitigate price volatility in the ERCOT market, interconnecting to Oncor Electric’s transmission system. The project will utilize bifacial solar modules on a single-axis tracker, which is the industry standard nationwide for large utility-scale solar projects.
The company said it expects to monetize over $500 million of production tax credits (PTC) over the next ten years.
“Closing project financing and a long-term purchase agreement for the PTCs on a large project in west Texas is complex,” said Vesper Energy’s chief financial officer Robert Scheuermann. “We are proud to invest in Hornet Solar alongside top-tier lenders and investors.”
The $590 million debt financing package consists of a construction-to-term loan and a letter of credit facility. MUFG Bank Ltd., Nord/LB and Santander Corporate & Investment Banking operated as lead arrangers, BayernLB as joint lead arranger, and Associated Bank as lender.
The $500 million in Inflation Reduction Act production tax credits will be monetized and leveraged by the loan facility through the purchase commitment arranged by Advantage Capital. CCA Capital advised Vesper on the sourcing and structuring of the PTC agreement.
“This transaction demonstrates Advantage Capital’s ability to structure creative financing solutions for a dynamic and growing renewable energy market,” said Michael Sponseller, vice president, Advantage Capital.
Hornet Solar is projected to contribute more than $100 million in new tax revenue to Swisher County over the life of the project without raising taxes. Projected tax benefits include $61.2 million to the Tulia Independent School District, $25.7 million to Swisher County, and $11.9 million to the Swisher County Memorial Hospital.
Vesper Energy, headquartered in the Dallas area, has delivered more than 10 GW of renewable energy projects globally. Its project pipeline includes over 55 renewables and energy storage projects with a combined capacity of over 17 GW.
