Nexamp, Starbucks to build 40MW community solar in Illinois

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Community solar project located in Kingston, Illinois
Construction of Nexamp’s portfolio is currently underway and expects to commission the projects in 2025. Image: Nexamp.

US developer Nexamp has partnered with coffee giant Starbucks to build 40MW of community solar projects in the US state of Illinois.

Starbucks will receive a portion of the renewable electricity credits for the support of Nexamp’s Illinois operations, while the remaining capacity on the projects will be allocated to residents and businesses. The companies aim to expand the partnership to other regions in the US in the future.

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Construction of the portfolio is currently underway and Nexamp expects to power the projects in 2025.

This is the latest development for Nexamp, which recently raised US$520 million to expand its operations into new markets and execute its existing community solar project pipeline.

Zaid Ashai, CEO at Nexamp, said: “Community solar is a perfect way for retailers to make progress on their own sustainability goals while also playing a role in the build-out of renewable energy resources that have the ability to directly benefit their own customers.”

Corporate interest in the community solar market has been on the rise lately, with companies such as Starbucks and retail giant Walmart partnering with developers in different ways. There is more than one manner large corporations can become involved in community solar (Premium access), and investment in the space has been boosted (Premium access) since the passing of the Inflation Reduction Act (IRA) thanks to the implementation of several tax credits that can benefit these projects.

Illinois is among the leading states in installed capacity for community solar, behind only New York, Minnesota and Massachusetts. In 2021, the state passed a climate bill that aimed aimed, among other targets, to add 5.8GW of rooftop and community solar capacity by the end of the decade.

Catalyze selects EPC GreenSpark Solar to build 60MW community solar portfolio in New York

In other community solar news, independent power producer (IPP) Catalyze has selected engineering, procurement and construction (EPC) company GreenSpark Solar for the construction of a community solar portfolio in New York.

The portfolio consists of ten projects with a combined capacity of 60MW, which are expected to be completed between this year and mid-2025.

The projects will be partly funded by the New York State Energy Research and Development Authority (NYSERDA) through the NY-Sun Program. As a leading state in community solar, New York’s state governor Kathy Hochul unveiled plans to boost access to community solar earlier this year. New York leads US states in community solar deployment, with over 2GW of PV capacity installed.

“Community solar is one of the best avenues to bring the energy transition to low-middle income communities – a movement that GreenSpark is incredibly passionate about,” said Kevin Schulte, CEO of GreenSpark Solar.

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