DSD Renewables has closed on $75 million in tax equity financing from Bank of America to support the company’s 2023 build plan. The funding will support the development and deployment of 61 MW of commercial and industrial (C&I) projects, as well as community solar and storage assets, across California, Connecticut, Illinois, New Jersey, New York, Massachusetts, Minnesota, Pennsylvania and Washington, D.C.
“This investment is key in enabling DSD to efficiently deploy approximately a quarter of the projects in our 2023 build plan,” said Hannah McGovern, DSD’s VP of project finance. “DSD develops projects that benefit a diverse set of offtakers. Many of our projects aim to qualify for the low-to-moderate income, energy community, and domestically produced incentives established by the Inflation Reduction Act. This financing will allow us to optimize the value for our customers and partners, while delivering low-cost, low-carbon energy solutions across the U.S.”
This deal marks the second tax equity financing DSD has closed with Bank of America, one of the top renewable energy investors and lenders in the U.S. with a portfolio of approximately $13.5B as of December 31, 2022. Since 2015 Bank of America’s investments have contributed to approximately 41GW of installed renewable wind and solar energy capacity in the U.S. Through its sustainable finance goal, Bank of America has committed to mobilize and deploy $1.5 trillion in sustainable finance capital by 2030 to accelerate the transition to a low-carbon economy.
“Solar power is a source of clean, affordable electricity and job creation in communities across the U.S. This transaction supports the proliferation of commercial, industrial and community solar projects, and we’re proud to be delivering the financing solutions that this industry needs to continue growing,” said Omer Farooq, Managing Director in the Global Sustainable Finance Group at Bank of America.
Since spinning out of GE in 2019, DSD has completed five tax equity funding deals and raised over $1.8 billion to date, including the issuing of a first-of-its-kind asset-backed securitization.