Two U.S.-based distributed solar developers announced major financing deals this week, signaling continued investor interest in behind-the-meter renewable energy projects.
DSD Renewables said it closed $238 million in long-term financing from First Citizens Bank, Mitsubishi UFJ Financial Group and Nomura to support 233 megawatts (MW) of operational distributed solar and energy storage projects across 12 states. The portfolio includes 188 ground-mounted, rooftop and canopy systems, with roughly 127 MW allocated to community solar.
“This transaction marks an evolution in the market for distributed generation lending that acknowledges the captive nature of behind-the-meter assets that are linked to a stable, retail rate,” said Karin Logan, chief investment officer of DSD. The financing, structured as a five-year mini-perm facility, will refinance warehouse debt and leverage cash flow based on the performance profile of the assets.
In March, DSD also secured a $140 million tax equity investment from Morgan Stanley Renewables, marking the first time the company transferred tax credits created by the Inflation Reduction Act to corporate buyers. DSD Renewables, founded in 2012 as GE Solar and rebranded in 2019, has deployed more than 1 gigawatt (GW) of solar capacity and generated over 560 million kWh of renewable energy.
Separately, GDEV Management, a middle-market specialist in distributed energy resources (DERs), raised over $200 million in capital commitments for its second flagship fund, Fund II. The fund is supported by a large Canadian pension plan and multiple U.S. insurance companies.
“Over the past five years, our focus on distributed generation, energy reliability, and retail rate-linked revenue models has remained steadfast, even as markets and legislation experience volatility,” said Benjamin Baker, managing partner at GDEV. Fund II has already made seven platform investments, including Nexus PMG, Lightshift Energy and 3V Infrastructure, focusing on energy storage and EV charging.
Both developers cited the speed and flexibility of behind-the-meter solar and storage projects as a key factor attracting investors, allowing projects to bypass lengthy permitting and interconnection delays.
GDEV’s previous fund, launched in 2020, has included the sale of Commonwealth Energy Partners to Perennial Power Holdings and partnerships enabling acquisitions by Apollo Global Management and CleanCapital.
