Small-scale utility and community solar developer Renewable Properties has secured a US$25 million development capital investment to continue developing its 1GW US community solar project pipeline.
The capital was provided by West Town Bank and Trust, a long-term partner with the developer which has provided a total of US$50 million in support of 38.5MW of projects since 2019.
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Renewable Properties said that it will use the funding to begin construction on over 200MW of community solar projects in Illinois, California and New York over the next two years. In addition, some of the capital will support the launch of a new electric vehicle charging infrastructure service that will target medium to heavy-duty electric lorry fleets.
As of the third quarter of 2023, Renewable Properties’ current pipeline includes 37 projects in operation and construction, totalling over 152MW, as well as over 1GW of community solar projects under development across the US.
“Renewable Properties is pleased to be working with dependable and consistent partners like West Town, who support our ongoing mission to drive renewable energy forward for local communities,” said Aaron Halimi, founder & CEO of Renewable Properties.
“This new line of credit will enable us to bring solar access to even more Americans and to expand our business into EV fleet charging, an area that remains underdeveloped.”
In March this year, the company closed a funding round with Nelnet Renewable Energy and AB CarVal to support 30MW of community solar projects in California and New York.
US community solar – the term for smaller-scale solar projects that serve local communities, often through part-ownership by the community – is set to grow significantly in the coming years. The Department of Energy (DOE) announced financial rewards for certain community solar projects last week and the government’s Inflation Reduction Act (IRA) incentives are set to boost the sector considerably.
Of these incentives, the tax break for low- to moderate-income (LMI) households and communities is expected to make the biggest change for community solar projects. Last month the DOE clarified the LMI tax adder, which offers a 10-20% credit to projects of less than 5MW capacity in LMI, tribal or ‘underserved’ areas.
