Duke Energy Renewables has closed a $109.4 million investment from Goldman Sachs’ Alternative Energy Investing Group for commercial and industrial solar projects.
The money will be used over 18 months to build about 75 megawatts worth of solar projects and solar-plus storage projects developed and built by REC Solar, which is a business unit of Duke Renewables. The projects will include community solar projects as well as ground- or roof-mounted projects for businesses across several states, including Arizona, California, Colorado, Hawaii, Massachusetts and Texas.
“Goldman Sachs’ investment will support Duke Energy Renewables’ continued growth in the distributed energy space, which will further our goals of delivering long-term value to customers and investors,” says Duke Renewables President Chris Fallon.
The preferred tax equity structure Goldman Sachs uses monetizes both cash and tax attributes the projects generate. It is tailored to large, distributed portfolios of renewable assets. The structure enables Duke to free up capital for its distributed generation projects.
The projects are smaller than the utility-scale facilities often operated by Duke Renewables. They are sized usually for a single business or facility.
“Our partnership with Duke Energy Renewables demonstrates the benefits of an integrated approach to financing high-quality distributed solar projects at scale,” says Vivek Kagzi, a vice president in alternative energy at Goldman Sachs. “By combining the financing of tax and cash attributes into a single product, Goldman Sachs is able to provide sponsors like Duke Energy Renewables with comprehensive and flexible financing solutions.”
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