Ash Creek Solar Project : Primergy Solar raises $350m in tax equity for Texan facility

Primergy Solar, LLC has secured $350 million in tax equity financing for its 408 MWac Ash Creek Solar project located in Hill County, Texas. The announcement, made on October 17, 2024, marks another milestone in the project’s development as the company ramps up its investment efforts in the renewable energy sector.

The latest funding brings total capital raised for the Ash Creek Solar project to nearly $1 billion. Earlier this year, Primergy secured $588 million in project financing for the construction phase and signed a long-term power purchase agreement with Microsoft. The Ash Creek Solar project is under construction and is projected to begin operations in early 2025.

Primergy’s CFO, Tim Larrison, emphasized that the successful tax equity financing is a reflection of the team’s capability to deliver high-quality projects in the ERCOT market. Larrison highlighted that such large-scale solar initiatives are critical for decarbonizing and fortifying the nation’s electric grid, adding that the continued support from leading financial institutions and investors is vital for achieving their clean energy objectives.

Major Investors Backing the Project

The tax equity investment was spearheaded by a Fortune 500 telecommunications company, supplemented by Truist Bank. The transaction saw legal and advisory support from Latham & Watkins LLP and Paragon Energy Capital for Primergy, while Milbank LLP and Cornerstone Financial Advisors LLC represented the telecommunications company and Truist Bank.

Strategic Milestones and Historical Context

Primergy, together with Quinbrook Infrastructure Partners, has now closed approximately $3.8 billion in total debt and tax equity financing commitments for U.S. solar and battery storage assets since 2020. The Ash Creek Solar project itself has a notable history; it was initially developed by Orion Power Generation, LLC—a joint venture between Orion Renewable Energy Group LLC and Eolian—before Primergy acquired the project in 2021.

Expert Insights: Strategic Partnerships Boosting Clean Energy Transition

Industry experts suggest that strategic collaborations, like Primergy’s partnership with Microsoft and the involvement of financial heavyweights like Truist Bank, indicate a growing confidence in large-scale renewable projects. As renewable energy developers face challenges in the ERCOT market, these alliances are seen as pivotal in ensuring project viability and long-term sustainability.