Distributed solar specialist DSD has raised US$85 million in tax equity financing to fund the development of its commercial and industrial (C&I) project pipeline.
The installer has raised the US$85 million from Bank of America, having previously secured a two-year US$150 million construction revolving credit facility from Rabobank and a US$300 million debt facility from Credit Suisse to finance the build-out of its C&I unit.
Chief executive Erik Schiemann said the latest round of financing “nicely complements the Credit Suisse and Rabobank financing deals closed earlier this year, and once again validates DSD’s evolution as an industry hub for the C&I market.”
DSD, launched as a startup business within General Electric, provides both PV and energy storage solutions, to commercial, industrial and municipal organisations.
The company was fully acquired by BlackRock last November after the investor first bought an 80% stake in July 2019. It also received financial backing last year from Morgan Stanley, Silicon Valley Bank and Fifth Third Bank, which will be used to fund distributed generation projects developed in 2020.
Although growth of C&I solar installations slowed down last year, several major firms have taken interest in the segment. Netherlands-based liquified petroleum gas (LPG) distributor SHV acquired a majority stake in Indian solar project designer and power producer SunSource Energy earlier this year, with the deal expected to ramp up capacity to more than 550MWp in two years.
In the US, EDF Renewables acquired 100% of US distributed generation company EnterSolar in January, while EDP Renewables also recently purchased C2 Omega, the distributed solar platform of renewables investor C2 Energy Capital.