US developer energyRe has secured $155m in project financing and an $85m tax equity commitment for a 108MW (dc) solar and battery project in South Carolina.
The Lone Star Solar scheme, which has a 198 megawatt hour battery energy storage system (BESS), is under construction and is expected to be operational in the second half of 2024.
The $155m in project financing for Lone Star Solar includes construction debt, tax equity bridge facility and letter of credit facility with Santander acting as the Coordinating Lead Arranger.
Bank of America has committed $85m in tax equity.
The project qualifies for Investment Tax Credits (ITCs) under the Inflation Reduction Act (IRA).
“Lone Star Solar reflects energyRe’s commitment to accelerating the U.S. energy transition with reliable, clean power,” said the company’s chief executive Miguel Prado.
“We are grateful to our financial partners for supporting Lone Star Solar, which will be one of the largest solar and storage facilities in the Southeastern United States.
“Today’s announcement underscores energyRe’s market leadership and our proven track record of delivering results for our communities.”
In January 2023, energyRe announced a 10-year power purchase agreement with Dominion Energy South Carolina for Lone Star Solar.
Upon completion, the scheme will be one of the largest solar and storage facilities in the south-eastern United States.
Syensqo, formerly part of the Solvay Group, will purchase 100% of the renewable energy certificates (RECs) generated by Lone Star Solar.
The announcement builds on energyRe’s track record of investment and clean energy development in the Palmetto State, said the developer.
It has more than 700MW of contracted solar projects in South Carolina and a regional development pipeline of more than 7GW.