Renewable Properties, a developer, owner and investor in small-scale utility and community solar projects, has completed tax equity funding for 11.6 MW of solar projects with KeyState Renewable’s SOLCAP solar tax equity fund for community and regional bank investors.
The Fund 6 Portfolio consists of three solar projects. Two New York community solar projects, the 5 MW Rock Island Road solar project in Gouverneur and the 5.7 MW Bullis Road solar project in Marilla, were completed in the summer of 2022. The third project, a nearly 1 MW qualifying facility project in Bourne, Mass., was completed in December 2021. In their first year of operation, the three projects are expected to produce a total of 16,645,000 kWh of solar energy.
Projects like these are made possible by tax equity funding, which is a critical clean energy partner-investor relationship that has enabled the energy transition in the U.S. Many of the incentives in the recently passed Inflation Reduction Act (IRA) utilize tax equity to enable renewable energy development.
The recently passed IRA is a transformational bill with provisions that will entice large numbers of mid-size businesses and community banks to deploy capital into renewable energy projects across the U.S. It extends solar and storage investment tax credits (ITCs) for at least 10 more years and retroactively increases the ITC from 26% to 30%, effective Jan. 1, 2022. This extension and expansion of ITCs will result in a significant increase in renewable energy projects being developed and constructed over the next decade.
“Great partners like SOLCAP are imperative for the solar industry to thrive,” says Allan Riska, chief investment officer for Renewable Properties. “Without tax equity investors, we would be further from accomplishing U.S. climate emission reduction targets. With so many tax equity-based incentives available to investors today, finding consistent tax equity partners can be challenging. That’s why it’s crucial to have strong investor partners like SOLCAP, which allows us to responsibly develop and own projects. Having a long-term and reliable partner is critical to building out more green infrastructure. We look forward to continuing our successful relationship with SOLCAP.”
Renewable Properties began working with SOLCAP in 2019 to develop a solar industry financing product that would lead to scale and efficiency. Their collaboration led to the financing of these New York and Massachusetts projects in Fund 6. With the completion of these three projects, Renewable Properties and SOLCAP are now working together on new projects in Maine, North Carolina and California. SOLCAP’s relationships with community and regional bank investors will enable an expansion of projects in partnership with Renewable Properties.
KeyState Renewables and Corner Power launched the SOLCAP tax equity platform in 2019. Since then, SOLCAP has funded 28 similar solar projects to date, totaling over 160 MW DC. An additional 22 projects are in development or under construction, broadening SOLCAP’s footprint to seven states. With the completion of all current in-progress solar projects, SOLCAP will have deployed over $200 million on behalf of its community and regional bank investors.
“Community banks are very logical tax equity investors for small-scale utility and community solar projects. Our SOLCAP tax equity fund platform allows community banks to efficiently deploy tax equity investments across a diversified portfolio of projects,” says Josh Miller, CEO of KeyState Renewables, the managing member of SOLCAP. “Renewable Properties has been a tremendous partner over the past four years. Their seasoned management team’s focus on small-scale utility and community solar projects is a perfect fit for our community bank investors. SOLCAP looks forward to being a stable, efficient source of solar tax equity for Renewable Properties for years to come.”
Renewable Properties is further expanding its portfolio with more community solar and locally sited projects for its upcoming 32 MW Fund 7, which is expected to be fully funded in Q1 of 2023 and will continue a successful partnership with SOLCAP.