sPower, a renewable energy Independent Power Producer (IPP), based in Salt Lake City, Utah, announced that it closed on a $350 million tax equity commitment for the 620-MWdc Spotsylvania Solar Energy Center in Virginia.
Construction has already begun on the project, which sPower says is its largest to date, and the company aims to complete it in 2021.
Wells Fargo’s Renewable Energy and Environmental Finance group is the sole investor for the commitment, making this one of the largest standalone tax equity investments in recent solar 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.
The project aims to offset 825,000 metric tons of carbon dioxide emissions each year and generate 700 new jobs. In addition to increased property tax revenue, the project will generate millions in additional revenue for the local community of Spotsylvania through capital investments and purchasing of local goods and services.
CohnReznick Capital served as sPower’s financial advisor and Sheppard Mullin served as the counsel.