Solar Alliance Energy Inc. has signed a memorandum of understanding with Redball Energy for the provision of tax equity financing of up to $530,000 for the company’s initial portfolio of solar projects in New York.
The tax equity investment will be through a customary partnership-flip agreement, which is non-dilutive and structured at the individual project level, the company says. The MOU also outlines the intention of the parties to collaborate on future tax equity investments as Solar Alliance expands its portfolio of assets under ownership.
“Securing tax equity financing for our New York projects is a critical milestone,” says CEO Myke Clark. “Tax equity financing allows Solar Alliance to reduce the amount of sponsor equity required for these two projects and increases the return on investment. Combined with future project debt, the tax equity structure can be replicated as we target additional solar projects and seek to grow our portfolio of assets that will generate recurring revenue for Solar Alliance.”
Solar Alliance will own and operate two ground-mounted solar projects in New York:
US1: 389 kW located in the Village of Union Springs, Cayuga County
VC1: 298 kW located in the Village of Cazenovia, Madison County
Both projects are expected to achieve commercial operation in Q4 2022.
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Author: Michael Bates