US renewables developer Radial Power has raised US$80 million in tax equity financing from the Bank of America Corporation to develop commercial and industrial and community solar projects with a combined capacity of 96MW.
The company will use the funding to develop and install “both asset and portfolio-level” projects, according to Radial Power, based in nine US states, although it did not specify which ones. The majority of the company’s projects are rooftop solar facilities, and include a 3.4MW project in Austin, Texas, and a 4.7MW facility currently under construction in Essex, Maryland.
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“This strategic investment will support Radial Power’s robust pipeline of low-cost, low-carbon clean energy solutions that enable off-takers to meet their ESG and sustainability goals,” said John M. King, Radial Power chief financial officer.
“Our national portfolio of best-in-class distributed generation projects is unlocking revenues from underutilised real estate, delivering value to our customers, and accelerating a reliable US energy transition.”
The scope of the Bank of America’s investment, and the scale of the new projects under development by Radial Power, reflect the increased speed at which the US will need to complete its energy transition. The US government plans to meet 80% of its energy demand with renewables by 2030, but fossil fuels accounted for meeting 79% of the US energy demand as recently as 2021, so new projects will need to be completed quickly, and on a large scale.
The Bank of America, for its part, invested around US$13.5 billion into clean energy tax equity financing as of the end of 2022, and continued support from the country’s largest banks will be an integral part of meeting the government’s clean energy goals.
Earlier this month, US law firm McDermott Will & Emery told PV Tech Premium that aspects of the Inflation Reduction Act (IRA) had made investing in new solar projects more financially viable for companies, and ensuring that projects are as economically lucrative as possible is a key objective of the legislation.