Santa Paula Energy Storage Project : esVolta secures tax equity investment from U.S. Bancorp

esVolta, LP, a prominent developer in North America’s utility-scale battery storage sector, has closed a significant tax equity investment with U.S. Bancorp Impact Finance for its Santa Paula Energy Storage project. This financing will support the completion of a 30 MW / 60 MWh battery project near Los Angeles, set to enhance California’s electric grid.

Investment Marks a Milestone in Sustainable Energy Development

The new tax equity financing marks a crucial step in the construction of the Santa Paula project, which is expected to commence commercial operations later this year. This project is vital for providing reliable electric capacity and energy services, including contracts with a major energy firm and several California electric community choice aggregators.

Pioneering Tax Equity Structure Under the Inflation Reduction Act

This transaction leverages the tax credits for standalone energy storage made possible by the 2022 Inflation Reduction Act, with esVolta and Impact Finance at the forefront of utilizing this innovative financing structure.

Leaders’ Perspectives on the Strategic Investment

Randolph Mann, President of esVolta, highlighted the significance of this first tax equity transaction with U.S. Bank. Scott Jacobs of Generate Capital, which acquired esVolta in 2022, emphasized the project’s role in the transition to utility-scale storage. Darren Van’t Hof of U.S. Bancorp Impact Finance expressed commitment to supporting sustainable and green infrastructure.

Legal Expertise Facilitating the Transaction

The deal was made possible with legal expertise from Orrick Herrington & Sutcliffe LLP for esVolta and Leverage Law Group, LLC for U.S. Bank.

About esVolta and U.S. Bancorp Impact Finance:

esVolta, backed by U.S. Bancorp’s investment, is set to play a pivotal role in California’s energy infrastructure, aligning with the state’s green energy goals and grid resilience efforts.