Renewable Properties, other developers secure expansion capital | Solar Financing Spotlight

Renewable Properties solar financing
A Renewable Properties solar project in Northern California.

Several solar developers have secured financing to advance construction projects across the United States. Renewable Properties, DSD Renewables, Altus Power and Strata take center stage in Solar Builder’s latest Solar Financing Spotlight.

Renewable Properties has secured $25 million in development capital from West Town Bank and Trust. The line of credit will enable the company to advance the development of its 1 GW pipeline of community solar and energy storage projects across the United States.

Over the next two years, the funding will enable Renewable Properties to start construction on more than 200 MW of community solar and energy storage projects in its primary markets of California, Illinois and New York.

 In addition to supporting the development of its community solar pipeline, the company will use a portion of the funds to launch a new electric vehicle charging infrastructure service that will target medium to heavy-duty electric truck fleets, primarily focused on last mile deliveries.

“This new line of credit will enable us to bring solar access to even more Americans and to expand our business into EV fleet charging, an area that remains underdeveloped,” said Aaron Halimi, founder and CEO of Renewable Properties.

 West Town has been a Renewable Properties finance partner since 2019, when it provided the developer with construction and permanent loans for the company’s first portfolio of projects. Since then, West Town has participated in further portfolio financings for Renewable Properties, providing construction and permanent loans for 38.5 MW of projects, totaling $50 million.

DSD receives $250 million investment from Cox Enterprises

DSD Renewables has received a $250 million strategic investment from Cox Enterprises Inc. to support the developer’s growth as it continues to realize its mission of accelerating renewable energy deployment.

This investment is Cox’s largest renewable energy investment to date and demonstrates the investor’s commitment to building a more sustainable future. Cox is increasingly focused on cleantech and renewable energy, with substantial investments and acquisitions across a range of sustainable technologies. Cox remains dedicated to making a positive and lasting environmental impact on the world by supporting leading businesses.

“This significant investment from Cox marks a pivotal milestone for DSD, enabling our continued evolution to becoming an influential market leader,” said Erik Schiemann, CEO at DSD. “Our growth, initially fueled by BlackRock’s faith in us, now enters a new chapter with Cox that will advance our position as a cleantech leader and scale our business. This partnership is a testament to how far we’ve come and our unwavering commitment to accelerating renewable energy solutions deployment.”

BlackRock’s Climate Infrastructure business is currently and will remain the majority stakeholder in DSD, alongside Cox.

Altus Power closes on $200 million construction loan

Altus Power Inc. has closed on its Blackstone Construction Facility. The loan is designed for the construction of commercial solar assets and includes capacity of $200 million to fund costs including equipment, labor, interconnection as well as development fees.

“In an environment where bank lending and conventional construction facilities are extremely limited, Altus Power has secured an additional line of capital from Blackstone which can be used to fund our construction activity,” said Dustin Weber, CFO of Altus Power. “This new facility provides a significant advantage as we look to optimize our working capital to support our targeted expansion in 2024 and beyond.”

Altus cofounder and co-CEO Gregg Felton said the company was built to be resilient and capable of prospering in various market environments.

“This first-of-its-kind facility demonstrates our team’s financing ingenuity and our long-standing Blackstone relationship,” Felton added. “Together with Blackstone, we designed this construction facility to leverage the strong appetite of insurance capital which provides long-term financing and will now also finance Altus during the construction period.”

Strata secures $300 million loan to expand project development pipeline

Strata Clean Energy announced the closing of a $300 million new revolving loan and letter of credit facility to expand its operational fleet and accelerate the commercialization of its diversified 17+ GW development pipeline.  

Nomura Securities International Inc. led the financing, acting as Sole Coordinating Lead Arranger, Bookrunner, and Nomura Corporate Funding Americas LLC as Administrative Agent, with First Citizens Bank and ING Capital as Joint Lead Arrangers alongside five other participant banks. Notably, this loan adheres to a Green Financing Framework in accordance with the 2023 Loan Syndications and Trading Association (LSTA) Green Loan Principles, demonstrating Strata’s steadfast commitment to environmental responsibility. Nomura and ING Capital acted as Green Structuring Agents. 

The proceeds of the loan will support the development, construction, and operation of Strata’s upcoming renewable energy, energy storage, and Power-to-X projects. This facility also provides working capital for Strata’s growing EPC and O&M divisions, both of which have played a pivotal role in the Company’s 15-year history of high-quality execution for its own Independent Power Producer (IPP) and third-party customers.  

“This facility strengthens Strata’s liquidity position and enables us to drive forward with groundbreaking and economically viable renewable initiatives in markets nationwide,” said Alice Heathcote, CFO of Strata Clean Energy. “The support of our financial partners is instrumental in propelling us forward as a leading fully-integrated cleantech platform, offering a comprehensive one-stop solution for development through construction, with an unwavering commitment to quality.” 

Nixon Peabody and Norton Rose Fulbright acted as Borrower’s and Lenders’ counsel respectively.

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