Nexamp secures $400 million to fund community solar in six states

financing deal

Nexamp has acquired more than $400 million in tax equity and debt commitments to support the creation of 49 solar and battery storage projects in six states, spanning the Northeast, Mid-Atlantic and Midwest.

Led by U.S. Bancorp Impact Finance and Mitsubishi UFJ Finance Group (MUFG), this latest round of financing will enable Nexamp to develop community solar facilities that will allow more than 25,000 households to receive a combined $6.5 million in estimated annual electricity bill savings. This investment will also create a total of 2,390 construction and operations jobs to support local economic growth in addition to expanding solar access for rural and underserved communities. As the U.S. continues to build its solar supply chain, these jobs will help accelerate the nationwide transition to a greener economy.

Community solar, or shared solar, enables any local resident to subscribe to a solar farm and receive credits on their monthly utility bill to reduce their annual electric costs. The projects, which have a total generating capacity of nearly 250 MWdc and can power up to 40,000 households, are sited in predominantly rural communities in Maine, Maryland, Massachusetts, New York, Minnesota and Illinois, to help eliminate barriers associated with installing solar panels.

“In order for the U.S. to overcome its reliance on fossil fuels and an outdated power grid, we must invest in affordable and sustainable clean energy solutions that are accessible to all Americans, no matter where they live,” said Nexamp CEO Zaid Ashai. “Nexamp is expanding its reach to meet the critical needs of communities, especially those that are historically underserved, ensuring they’re represented in the transition to a resilient, dynamic and clean energy grid.”

Nexamp’s financing effort was bolstered by the Inflation Reduction Act, which extended and expanded the investment tax credits for clean energy resources, and sets the stage for accelerated solar growth in the coming decade. Beginning in 2023, newly established bonus credits will ensure that low-income and other traditionally marginalized communities will more equitably share in the direct benefits and economic growth spurred by the IRA, the Biden administration’s landmark climate bill.

“We believe everyone has a role to play in creating a sustainable future and investing in projects like these is one of the ways we can support the transition to a greener economy,” said Jacob Gibson of U.S. Bancorp Impact Finance.

MUFG managing director Takaki Sakai added: “Community solar projects are playing a vital role in the energy transition, providing a diverse set of communities with access to participate in this societal effort.”

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