Pivot Energy, a US-based renewable energy developer, has recently closed a financing facility worth US$203 million to fund the development of 100MW of distributed solar PV projects in several states across the country.
The funding will be used for 35 community solar and commercial and industrial (C&I) solar projects with a combined capacity of 100MW across Colorado, Minnesota, Illinois, New York, Hawaii, Maryland, and California. The projects are expected to be operational between Q2 2023 and Q2 2024 and will be serviced by the company's community solar subscriber management platform, SunCentral.
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The financing facility was led by Silicon Valley Bank (SVB), which recently raised concerns for the US distributed and community solar market when it collapsed. This marks the first loan that SVB has made since its acquisition by First Citizens Bank. Foss & Company will make the initial tax equity investment for the portfolio.
The company claims that this is the most extensive low- to middle-income (LMI) community solar portfolio to date and will serve 8,000 LMI households, municipalities, healthcare facilities, and other commercial clients.
Bret Turner, Head of Project Finance, Business Development, and Innovation at SVB, praised Pivot Energy and ECP for being front runners in transitioning the country's energy sources to affordable, clean, renewable energy. He also stated that they are pleased to have led and structured this portfolio of solar projects across 35 sites in seven key markets.
According to research analyst Wood Mackenzie, community solar in the US is set to more than double in the next five years as a result of the Inflation Reduction Act's incentives. Pivot Energy secured a US$100 million loan in October 2022 to fund the development of its US solar and storage pipeline.
Pivot Energy's recent funding will further boost the company's efforts in providing clean and affordable energy to communities across the country. With the increasing demand for renewable energy, it is crucial to have such initiatives that aim to transition towards a sustainable future.
