Radial Power has secured an $80 million tax equity financing deal with Bank of America. This substantial investment is aimed at bolstering the company’s expansive pipeline of distributed generation projects until late 2024. The funds will be channeled towards both asset and portfolio-level turn-key integrated commercial and industrial (C&I) initiatives, as well as community solar solutions.
The tax equity capital infusion, coupled with backleverage, stands poised to significantly drive the development and installation of an estimated 96 megawatts of C&I and community solar projects. These ventures will span over nine states and cater to multiple anchor real estate clients, marking a pivotal step towards sustainable energy solutions.
“This financial backing empowers us to deliver on our commitment to aiding offtakers in meeting their ESG and sustainability objectives,” John M. King, Radial Power’s Chief Financial Officer, said.
The collaboration between Radial Power and Bank of America marks the inception of their tax equity financing partnership. Bank of America, recognized as a front-runner in renewable energy tax equity financing, boasts a substantial portfolio of around $13.5 billion by the close of 2022. Their investments have been pivotal in steering the development of approximately 40.7 gigawatts of installed renewable wind and solar energy capacity across the United States.
Danielle King, Director in the Global Sustainable Finance Group at Bank of America, underscored the significance of the tax equity transaction. “This move reaffirms Bank of America’s steadfast dedication to mobilizing and deploying $1.5 trillion in sustainable finance capital by 2030.”
Bank of America’s portfolio not only encompasses utility-scale renewable projects but also extends support to distributed solar generation for residential and commercial/industrial customers, electric vehicles, and boasts a diverse array of renewable energy installations including 176 wind farms, 59 solar farms, and over 160,000 rooftop setups.