SB Energy Global, in collaboration with financial institutions including J.P. Morgan, Bank of America, Morgan Stanley Renewables, and Truist Bank, has secured $2.4 billion investment. This financial boost aims to fortify energy communities through the production of domestically sourced renewable energy in the United States.
A significant portion of this investment, approximately $800 million in tax equity, was successfully closed in collaboration with J.P. Morgan, Bank of America, Morgan Stanley Renewables, and Truist Bank.
Additionally, SB Energy Global worked with seven other esteemed financial institutions — MUFG, Mizuho Americas, ING, SMBC, CIBC, Fifth Third Bank, and Societe Generale — to raise $450 million in term debt and a substantial $1.2 billion in construction debt. These funds are earmarked to support a robust 1.3-gigawatt (GW) portfolio comprising four utility-scale solar projects.
SB Energy Global highlighted the pivotal role of the Inflation Reduction Act (IRA) in propelling the clean energy industry forward. The IRA’s expansion of tax credits and innovative approaches to tax equity, such as transferability, have been instrumental in SB Energy’s pursuit of new avenues within the clean energy landscape.
The four projects supported by SB Energy Global have facilitated the creation of over 3,600 new direct and supply chain jobs, particularly benefitting energy communities grappling with higher than average unemployment rates stemming from recent coal closures or fossil fuel retirements.
Moreover, three of these projects mark a significant milestone as the inaugural utility-scale projects in the U.S. to achieve financial closure leveraging the “domestic content adder.” This provision within the IRA aims to bolster America’s manufacturing prowess and promote high-paying jobs in the sector.
SB Energy qualifies for this adder by utilizing 1.1 million high domestic content solar modules manufactured in Ohio by First Solar. Additionally, Nextracker is providing trackers sourced from multiple U.S. states, including Pennsylvania, Nevada, and Tennessee, while structural steel from Texas and Georgia will be used across these projects.
Rich Hossfeld, Co-CEO of SB Energy, emphasized, “The IRA’s incentives for domestic content and energy communities are geared toward expanding America’s manufacturing base and fostering high-wage employment in communities in need.”
Meanwhile, technology major Google has entered into an agreement to purchase approximately 75 percent of the energy generated by these four projects, intending to power its expanding data center presence in Texas. This aligns with Google’s recent announcement of a $330 million investment in the state, involving the commencement of construction on a new data center in Red Oak.
Key financial institutions, including J.P. Morgan, Bank of America, Morgan Stanley Renewables, Truist Bank, MUFG, Mizuho Americas, ING, SMBC, CIBC, Fifth Third Bank, and Societe Generale, have played pivotal roles as tax equity providers and lead lenders across various projects.
SB Energy, backed by SoftBank Group, continues to solidify its position in the renewable energy landscape, boasting 2 GW of solar in operation, 1 GW under construction, and an impressive pipeline of over 15 GW of solar and 12 GW of storage under development.