Restorative propertiesdeveloper, owner and investor in small utility and community solar projects, completed tax financing for 11.6 MW of solar projects with KeyState Renewable’s SOLCAP tax-adjusted sunshine fund for community and regional banking investors.
The Fund 6 portfolio consists of three solar projects. In the summer of 2022, two public solar projects in New York were completed: the 5 MW Rock Island Road Solar Project in Gouverneur and the 5.7 MW Bullis Road Solar Project in Marilla. The third project, a nearly 1 MW qualifier project in Bourne, Massachusetts, was completed in December 2021. The three projects are expected to generate a total of 16,645,000 kWh of solar energy in their first year of operation.
These projects are made possible by tax equity financing, which is a critical investment partner in clean energy, enabling the energy transition in the US. energy development.
The recently passed IRA is a transformative bill with provisions that will encourage more medium-sized businesses and community banks to direct capital to renewable energy projects in the US. It extends the Solar and Storage Investment Tax Credit (ITC) for at least another 10 years and retroactively increases the ITC from 26% to 30% starting January 1, 2022. This extension and expansion of the ITC will result in a significant increase in projects in areas of renewable energy being developed and built over the next decade.
“Great partners like SOLCAP are essential for the solar industry to thrive,” says Alan Risko, Chief Investment Officer of Renewable Properties. “Without tax-paying investors, we would be further from achieving US climate reduction goals. With so many tax equity-based incentives available to investors today, finding consistent tax partners can be challenging. That’s why it’s so important to have strong investment partners like SOLCAP that allow us to develop and own projects responsibly. Having a long-term and reliable partner is critical to creating a greener infrastructure. We look forward to continuing our successful relationship with SOLCAP.”
Renewable Properties began working with SOLCAP in 2019 to develop a solar industry financing product that will drive scale and efficiency. Their collaboration led to the funding of these projects in New York and Massachusetts in Fund 6. After completing these three projects, Renewable Properties and SOLCAP are now working together on new projects in Maine, North Carolina and California. SOLCAP’s relationship with community and regional bank investors will enable expansion of projects in partnership with Renewable Properties.
KeyState Renewables and Corner Power launched the SOLCAP tax equity platform in 2019. Since then, SOLCAP has financed 28 similar solar projects with a total capacity of more than 160 MW DC. Another 22 projects are under development or construction, expanding SOLCAP’s presence to seven states. Upon completion of all current solar projects, SOLCAP will commit more than $200 million on behalf of its community and regional bank investors.
“Community banks are very logical tax equity investors for small-scale utility and community solar projects. Our SOLCAP tax equity fund platform enables community banks to efficiently deploy tax equity investments across a diversified portfolio of projects,” said Josh Miller, CEO of KeyState Renewables, managing member of SOLCAP. “Renewable Properties has been a great partner for the past four years. Their experienced management team focuses on small-scale utility and community solar projects, a perfect fit for our community bank investors. SOLCAP looks forward to being a stable and efficient source of solar energy taxation for Renewable Properties for many years to come.”
Renewable Properties continues to expand its portfolio with more community solar and local projects for the upcoming 32 MW Fund 7, which is expected to be fully funded in Q1 2023 and will continue its successful partnership with SOLCAP.