DSD Renewables, a business backed by BlackRock Real Assets’ Global Renewable Power platform, secured $75 million in tax equity financing from Bank of America to support the company’s 2023 build plan – its pipeline of distributed generation solar projects to be built through 2023.
The tax equity will fund the development and deployment of 61 MW of commercial and industrial (C&I) projects and community solar and storage assets across California, Connecticut, Illinois, New Jersey, New York, Massachusetts, Minnesota, Pennsylvania, and Washington, DC.
This deal marks the second tax equity financing DSD has closed with Bank of America, one of the top renewable energy investors and lenders with a portfolio of approximately $13.5 billion as of December 31, 2022.
“This investment is key in enabling DSD to efficiently deploy approximately a quarter of the projects in our 2023 build plan,” says DSD’s Vice President of Project Finance, Hannah McGovern. “DSD develops projects that benefit a diverse set of off-takers. Many of our projects aim to qualify for the low-to-moderate income, energy community, and domestically produced incentives established by the Inflation Reduction Act. This financing will allow us to optimize the value for our customers and partners while delivering low-cost, low-carbon energy solutions across the U.S.”
“Solar power is a source of clean, affordable electricity and job creation in communities across the U.S. This transaction supports the proliferation of commercial, industrial and community solar projects, and we’re proud to be delivering the financing solutions that this industry needs to continue growing,” said Omer Farooq, Managing Director in the Global Sustainable Finance Group at Bank of America.
According to Mercom’s Q1 2023 Solar Funding and M&A report, large-scale project funding came to $5.3 billion in 62 deals, a decrease of 46% compared to $9.8 billion in 52 deals in Q4 2022.