US solar project developer Primergy Solar has closed US$350 million in tax equity financing for a 408MWac solar project in Hill County, Texas.
This brings the total capital funding for the Ash Creek project to over US$900 million, following a US$588 million raise for construction and credit loans in March this year. Construction is currently underway at the site, which Primergy acquired from developer Orion Power Generation in 2021, and the project is expected to begin operations in “early 2025”.
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Primergy has a power purchase agreement (PPA) in place with tech giant Microsoft for the entirety of Ash Creek’s capacity.
This US$350 million tax equity funding was led by an undisclosed “Fortune 500 telecommunications company”, the company said, with additional investment from Truist Bank, a US commercial bank.
Tim Larrison, CFO of Primergy said: “This level of successful tax equity financing in today’s Electric Reliability Council of Texas (ERCOT) market is a testament to our team’s ability to develop best-in-class projects.”
Primergy is owned by the investment fund Quinbrook Infrastructure Partners. The company has operational or under-construction solar and energy storage projects across 13 US states.
Its largest project to date is the Gemini solar-plus-storage project, a 690MW/380MW co-located project in Clark County, Nevada. Quinbrook and Primergy secured US$1.9 billion in credit and tax equity for the project in 2022 and the project began commercial operations in July this year.
In December 2023, Primergy closed another US$300 million financing deal for a 100MW PV plant in the state of Arkansas. The Prairie Mist project is expected to be operational by the end of this year.
