Renewable independent power producer (IPP) sPower closed on a $350 million tax equity commitment for Spotsylvania Solar Energy Center in Spotsylvania County, Virginia. At 620 MW DC, this is the largest solar project east of the Rockies. The project is currently under construction, with phases coming online this year through project completion in the summer of 2021.
The 620 MW DC solar project represents sPower’s largest project to date and is the largest single-asset financing in the company’s history. It will generate an estimated 700 new jobs during the construction phase and approximately 20–25 full-time positions during operations.
Wells Fargo’s Renewable Energy & Environmental Finance group is the sole investor for the $350 million tax equity commitment, making this one of the largest standalone, tax equity investments in the solar industry’s recent history.
“This tax equity commitment is momentous for sPower, especially during these uncertain times. Partnerships like this, with Wells Fargo, are a key component of sPower’s place as an industry leader,” said Brian Callaway VP Structured Finance and M&A, sPower. “Finalizing this deal now, for an asset this large, signifies confidence in the future of not only our company but also in the industry.”
“This is a landmark project for our company, Spotsylvania County and Virginia. We reached this milestone around the same time Governor Northam signed the Virginia Clean Economy Act, beginning the state’s transition to 100% green energy,” said David Shipley, CFO, sPower. “It has been a long road to get here, but we are excited to be under construction and look forward to continued growth and partnership in Virginia.”
Wells Fargo has provided more than $7.5 billion of tax equity financing in support of more than 400 wind and solar projects since establishing the specialized group in 2007. The company also has pledged $200 billion in financing through 2030 to businesses and projects that contribute to a more sustainable future.
sPower expects to close the debt commitment in the coming weeks.
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