US community solar provider Nexamp has closed a US$440 million credit facility for a 380MW portfolio of PV and energy storage assets.
The agreement marks the largest debt financing of its kind, Nexamp said, and will fund a portfolio that spans five US states and consists of nearly 100 community solar projects as well as energy storage capacity totalling 120MWh.
MUFG Union Bank served as the coordinating lead arranger for the syndicated financing, which included participation from a range of lenders.
Based in Boston, Massachusetts, Nexamp develops, acquires, builds, owns and operates solar and storage projects, and now has a customer subscriber base of more than 25,000 homes and businesses.
The lender interest in response to the new portfolio demonstrates the momentum behind the renewables industry and is a “clear validation” of Nexamp’s approach to community solar, the company’s chief financial officer, Peter Tawczynski, said.
“We have built the most progressive and accessible community solar model available today, removing many of the traditional barriers and making it simple for customers to partner with Nexamp. As we bolster our solar portfolio with energy storage solutions, we look forward to launching new products in more geographies and delivering savings to our expanding customer base,” Tawczynski added.
Nexamp, which has nearly 300 solar and storage projects in the pipeline, said the financing arrangement positions the firm for accelerated growth in the coming year.
The strong economic gains and grid benefits of scaling up distributed solar and storage in the US were revealed in a recent report, which found that installing more than 247GW of rooftop and community solar and 160GW of local energy storage is the most cost-effective way for the country to transition to a clean energy system by 2050.