Recurrent Energy, a wholly owned subsidiary of Canadian Solar Inc. (“Canadian Solar”) (NASDAQ: CSIQ), announced that it has closed on debt financing and tax equity investment commitment for the 74.8 MWac/102 MWp NC 102 solar photovoltaic project, located in Cabarrus County, North Carolina.
Prudential Capital Group will provide a $106.7 million debt facility for the project, including a tax equity bridge loan, term loan and revolving loan to the project. U.S. Bancorp Community Development Corporation (“USBCDC”), a division of U.S. Bank, will make a tax equity investment in the project under a separate agreement.
"Prudential Capital Group and USBCDC are widely regarded as leading investors in the energy space, and we are pleased to partner again with them to continue growing our project portfolio in the United States,” said Dr. Shawn Qu, chairman and chief executive officer of Canadian Solar.
The NC 102 project, which is under construction and is expected to reach commercial operation in the third quarter of 2018, will be one of the largest operating solar projects in North Carolina. The project has a power purchase agreement for 10 years starting in 2018 with Duke Energy Carolinas. Once operating, the project will generate enough clean solar power to meet the energy needs of approximately 12,000 homes.
"Prudential Capital Group is pleased to continue supporting the growth of renewable energy in North Carolina and to strengthen our relationship with Canadian Solar and Recurrent Energy,” said Wendy Carlson, managing director of Prudential Capital Group's Energy Finance Group: Power.
USBCDC and Prudential Capital Group financed last year the IS-42 solar project in North Carolina, which Recurrent Energybrought to commercial operation in October 2017. USBCDC and Prudential Capital Group have also separately partnered with Recurrent Energy on various solar projects developed in California.
"It is our pleasure to collaborate with Recurrent Energy to support the solar industry in North Carolina,” said Adam Altenhofen, vice president of USBCDC. “As solar energy continues to grow in the state, we look forward to being part of that growth.”