US $350m funding for Spotsylvania Solar Energy Center in Spotsylvania County, Virginia, US has been secured. At 620 MW DC, this is the largest solar project east of the Rockies. The project is currently under construction, with phases coming online this year through project completion in the summer of 2021; sPower is the developer.
Wells Fargo’s Renewable Energy & Environmental Finance group is the sole investor for the US $350m tax equity commitment, making this one of the largest standalone, tax equity investments in the solar industry’s recent history.
According to Brian Callaway VP Structured Finance and M&A, sPower, this tax equity commitment is momentous for sPower, especially during these uncertain times. Partnerships like this, with Wells Fargo, are a key component of sPower’s place as an industry leader. “Finalizing this deal now, for an asset this large, signifies confidence in the future of not only our company but also in the industry,” he said.
David Shipley, CFO, sPower said that this is a landmark project for the company, Spotsylvania County and Virginia. “We reached this milestone around the same time Governor Northam signed the Virginia Clean Economy Act, beginning the state’s transition to 100% green energy. It has been a long road to get here, but we are excited to be under construction and look forward to continued growth and partnership in Virginia,” he added.
According to Andrew Kho Managing Director and head of originations for Wells Fargo’s Renewable Energy & Environmental Finance group they are very proud to provide tax equity financing to sPower for this historic project. “We look forward to continuing to support sPower and helping to accelerate the transition to a low carbon economy,” he affirmed.
The 620MW DC solar project represents sPower’s largest project to date and is the largest single-asset financing in the company’s history. The project will offset approximately 825,000 metric tons of carbon dioxide emissions each year and will generate an estimated 700 new jobs during the construction phase and approximately 20–25 full-time positions during operations.
In addition to increased property tax revenue for Spotsylvania County, the project will generate millions of dollars in additional revenue for the local community through capital investments and purchasing of local goods and services. sPower expects to close the debt commitment in the coming weeks.