Arevon Energy, a renewable energy developer, owner, and operator, secured a $98 million tax equity commitment from Fifth Third Bank to develop 265 MW of solar projects in the U.S. The 192 MW Ratts and the 73 MW Heirloom solar projects are currently under construction and are expected to be fully operational later this year.
These projects will add 265 MW of new domestic energy to Pike County, Indiana, and will expand Arevon’s portfolio in the Midwest/Midcontinent Independent System Operator (MISO) territories.
Collectively, the two Pike County projects represent nearly $400 million in investment and will generate over $86 million in payments to local governments throughout their lifespans, helping to fund schools, infrastructure, and other public services.
In September 2024, the company separately announced the financial closure of $299 million in debt financing commitments for the Ratts 1 and Heirloom solar projects. This $98 million tax equity partnership is the first with Fifth Third Bank, where Arevon benefits from the capital structure flexibility provided by the Inflation Reduction Act’s tax credit transfer provision.
Paragon Energy Capital served as the Sponsor Financial Advisor, Latham & Watkins as the Sponsor Counsel, and Norton Rose Fulbright as the Tax Equity Counsel for the projects’ tax equity commitment closing.
Ratts 1 Solar is under a long-term power purchase agreement with Indiana Municipal Power Agency, and Meta is the offtaker for Heirloom Solar.
“The complex and highly successful structure of this transaction marks another notable financial accomplishment for Arevon. This is a great example of what happens when all the right pieces come together,” said Denise Tait, Chief Investment Officer at Arevon. “We were proud to work with Fifth Third Bank and our other financing partners on all we have achieved across our projects’ financing packages. The Arevon team’s deep expertise and experience will enable us to continue to innovate on future financial transactions.”
According to Mercom’s Q1 2025 Solar Funding and M&A report, announced large-scale project funding increased by 27% in Q1 2025 compared to Q1 2024.
