DSD Renewables – a customized solar PV energy and energy storage solutions provider – secured a $40 million tax equity investment from U.S. Bank to finance a 45 MW portfolio consisting of a diverse mix of community solar, power purchase agreement (PPA), and feed-in-tariff projects.
Most projects are in New York, with the remaining located across Connecticut, Maine, Maryland, Minnesota, New Jersey, and Virginia.
The tax equity financing represents DSD’s first transaction with U.S. Bank, which commits $1 billion annually to renewable energy investments and has set a goal to achieve net zero greenhouse gas emissions by 2050. McDermott Will & Emery LLP served as counsel to DSD on the transaction.
“This tax equity investment will help DSD optimize value for many key projects under development and enable us to continue supporting the energy transition across the U.S.,” says Hannah McGovern, DSD’s Vice President of Structured Finance. “We are excited to partner with U.S. Bank and look forward to expanding our work together in the future.”
“We believe everyone has a role to play in creating a sustainable future and helping reduce the impacts of climate change,” said Colin Witherspoon, business development officer with U.S. Bancorp Community Development Corporation’s Environmental Finance team. “Investments like this are one way we can do our part and contribute to our net-zero goals while supporting DSD and its work to expand access to clean energy.”
According to Mercom’s 9M and Q3 2022 Solar Funding and M&A Report, large-scale project funding in the first nine months of 2022 came to $22.8 billion in 128 project funding deals, a 97% increase compared to $11.6 billion in 138 projects in 9M 2021. The European Bank for Reconstruction and Development (EBRD) has recently provided $5.5 million to the renewable energy subsidiary of Egyptian energy company TAQA Arabia to build and operate a 7-MW solar PV project in El Minya, Egypt. The funding comprises a $4.95 million loan from the EBRD and a $550,000 concessional loan from the Global Environment Facility (GEF).
