Primergy Solar, a developer of distributed and utility-scale solar and battery storage projects, has secured $350 million in tax equity financing for the 408 MWac Ash Creek solar project in Hill County, Texas. A Fortune 500 telecommunications company led the tax equity investment, with additional funding provided by Truist Bank.
Latham & Watkins and Paragon Energy Capital advised Primergy, while Milbank and Cornerstone Financial Advisors advised the telecommunications company and Truist Bank on the transaction. With this transaction, the total funding raised for the solar project has reached nearly $1 billion.
The project is currently under construction and is expected to reach commercial operation in early 2025. Microsoft has signed a long-term power purchase agreement with Primergy.
Earlier this year, the company announced the closure of its $588 million commitments in debt financing for the 408 MW Ash Creek solar project in Hill County, Texas.
“This level of successful tax equity financing in today’s ERCOT market is a testament to our team’s ability to develop best-in-class projects,” said Tim Larrison, CFO of Primergy. “Large-scale solar projects are essential for decarbonizing and increasing the resilience of our nation’s electric grid. We are pleased with the continued partnerships and the trust we receive from leading financial institutions and investors, which are essential to delivering clean energy to communities across America.”
According to Mercom’s recently released 9M and Q3 2024 Solar Funding and M&A report, large-scale project funding in the 9M 2024 totaled $34.3 billion in 180 deals, up from $27.5 billion in 169 deals in 9M 2023.
Earlier this month, Rezolv Energy, an independent power producer backed by Actis, secured up to €90 million (~$98.09 million) in debt financing to develop and construct the 225 MW St. George solar park in northeastern Bulgaria. The International Finance Corporation (IFC) and Raiffeisen Bank International provided the funding.
