SunVest Solar, a solar project developer, announced the closing of a $113 million debt facility and $41 million tax equity for 56 MW of solar projects in Illinois, Maine, Minnesota, and Wisconsin.
The construction will be done in stages through 2023, with part construction already underway at ten projects across all four states. The portfolio would be owned and operated by SunVest and represents the largest portfolio the company has developed to date.
Consumers procuring power from these projects include a regulated utility under a long-term power purchase agreement and community solar subscriptions from various commercial and residential customers.
The senior debt financing was led by Silicon Valley Bank, a financial services provider with unique expertise in community solar financing, and comprised a construction loan, tax equity bridge loan, and a permanent loan.
The debt facility, along with tax equity from Rockwood Group, through its partnership with Fortune 250 Guardian Life Insurance Company of America, would enable SunVest to fully construct, operate and own the portfolio under a subsidiary.
Bret Turner, Head of Project Finance, Business Development, and Innovation for Silicon Valley Bank said, “We are committed to supporting high-quality projects in the rapidly growing community solar space, which makes solar more accessible for all Americans and is crucial in efforts to combat climate change. The community solar subscriptions and PPA opportunities in SunVest’s portfolio offer customers an easy way to participate in the benefits of solar energy.”
Matt Neumann, CEO of SunVest, said, “Silicon Valley Bank has been an outstanding partner for SunVest as we have worked together to advance this diverse, national portfolio. We look forward to our continued partnership with Silicon Valley Bank as SunVest continues to rapidly grow our portfolio of owned and operated solar projects nationwide.”
In September, SunVest announced the commissioning of three community solar projects, two of which are located in Glenwood and Mazon, in Commonwealth Edison territory. The third project is located in downstate Elba, Ameren territory. The Glenwood site is believed to be the first community solar project commissioned in Cook County.
SunVest has acquired nearly 90 MW of projects in Illinois with another developer. The partnership has resulted in about 74 MW of solar projects being commissioned.
According to Mercom’s 9M and Q3 2022 Solar Funding and M&A Report, the large-scale project funding in the first nine months (9M) 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.