December 10, 2024
Solar Landscape has set a new annual record for financing solar energy projects. Avantus signed a PPA for a project in Arizona. SolarEdge closed its energy storage division. These are the stories we highlight in the latest version Solar financing spotlight.
Solar landscape has raised an annual corporate record of $847 million in project investments and financing by 2024. The financing will allow C&I’s roof developer to deploy more than 200 installations across the United States. The company also announced that it has signed contracts for an additional 40 million square feet of commercial and industrial roof space by 2024 to develop solar energy projects.
Solar Landscape partnered with ten investors and financing counterparties to raise $847 million in debt, equity and tax equity proceeds in 2024 to execute its ambitious growth agenda.
KeyState Renewables has committed through two investment vehicles to invest $184 million of taxpayer dollars in commercial solar projects developed by Solar Landscape. KeyState Renewables coordinates several regional banks as tax investors in the tax equity portfolio. Proceeds from the pledged tax return will fund the operation of 101 solar projects with a capacity of over 100 MW, all developed and owned by Solar Landscape. The projects will cover more than 8.5 million square feet of commercial and industrial rooftops.
Silicon Valley Bank, a division of First Citizens Bank, led a $283 million green loan with social co-benefits for commercial rooftop solar projects. Silicon Valley Bank, KeyBanc Capital Markets and National Bank of Canada coordinated the lead arrangers, which also included a range of institutional investors and participating banks. National Bank of Canada was the green structuring agent on the loan, which supports Solar Landscape’s significant investments in communities through workforce development and equitable access to clean energy.
Prologis, the global leader in logistics real estate, announced in September its partnership with Solar Landscape to develop and finance more than 30 million square feet of commercial rooftop solar projects. Solar Landscape is developing commercial rooftop solar projects across the country to support Prologis’ goal of deploying 1 gigawatt of on-site solar and battery storage by 2025.
In October, Walmart announced its investment in 74 Solar Landscape commercial rooftop solar projects in Maryland and Illinois. The commercial rooftop portfolio will create nearly 43 megawatts of solar capacity, improving grid infrastructure and expanding access to affordable clean energy.
As U.S. energy demand rises due to the growth of AI machine learning, data centers and the electrification of the economy, companies and regulators are increasingly looking to distributed generation (DG) for its speed of deployment and grid benefits. DG solar projects can typically be developed and built in 12 to 24 months thanks to faster interconnection times and modular setups.
In 2024, Solar Landscape leased an unprecedented 40 million square feet of commercial roof space in the United States. The 40 million square feet will require an additional $1 billion in project financing and will serve as the base for 500 MW of solar capacity. Solar Landscape now has more than 80 commercial real estate partners collectively owning more than 2 billion square feet in the United States.
“The surge in demand for electric grids in the U.S. makes commercial rooftops ideal for solar,” said Shaun Keegan, CEO and co-founder of Solar Landscape. “At Solar Landscape, we have been leading the design-build process for these projects since 2012, distinguishing ourselves by being vertically integrated and establishing sustainable partnerships with real estate clients. We started as a construction company and have built a reputation on delivering on our promises and maintaining genuine relationships with our partners.”
Avantus inks PPA for Kitt Solar Project in Arizona
Avantus signed a power purchase agreement with Arizona Public Service (APS) for the Kitt Solar Project. The project, located in Eloy, Arizona, features 100 MWac/130 MWdc of solar energy and 400 MWh of energy storage. Avantus will complete development and begin construction of the project in 2025, with work expected to begin in 2026.
“Avantus’ agreement with APS will increase the availability of clean and reliable energy in Arizona and is a testament to our leadership in developing high-quality renewable energy projects,” said Cliff Graham, CEO of Avantus. “The Kitt Solar Project will not only provide clean solar energy and offset carbon emissions, but will also provide much-needed energy storage capacity to meet rising demand and create a more resilient grid in Arizona.”
Over its lifetime, Kitt is expected to create up to 400 construction jobs and generate local tax revenue to support local services such as schools, public safety and infrastructure.
The combination of solar and energy storage capacity will play an important role in supporting the resiliency of Arizona’s electric grid and ensuring the state can meet peak demand amid extreme heat. In 2024, Arizona saw 113 consecutive days with temperatures at or above 100 degrees Fahrenheitwhich also caused demand to drop records for electricity.
“In the coming years, peak energy demand in Arizona is expected to grow significantly,” said Derek Seaman, director of commodity acquisition for APS. “The Kitt Solar Project will add to our growing solar and energy storage portfolio and provide our customers with additional reliable, cost-competitive and clean electricity.”
SolarEdge shutters energy storage division
SolarEdge Technologies Inc. stops all activities related to its energy storage division. This decision will result in a workforce reduction of approximately 500 employees, most of them in South Korea.
The company announced that the reason for the decision was to focus on its core solar energy business. Expected quarterly operating cost savings from the closure are approximately $7.5 million, with full run rate expected to be achieved in the second half of 2025. The company plans to sell assets related to the storage division’s operations, including battery cell manufacturing facilities. and pack. This will not impact solar companies’ sales of batteries for the residential and C&I markets.
“The decision to close our energy storage division was the result of a thoughtful analysis of our portfolio of businesses and product lines, industry trends and the competitive environment,” said Ronen Faier, interim CEO of SolarEdge. “The measures also represent the continued implementation of two of our key priorities: financial stability through cost reduction, return to positive cash flow and profitability, and focus on our core solar, PV-connected storage and energy management businesses.”
Keywords: Financing