- SB Energy is exploring various tax incentives
- SB Energy has committed to deploy 1.1 million high-domestic content solar modules
SB Energy Global has achieved a fund of $2.4 billion to support the development of renewable energy projects.
Some funds will be used to develop a 1.3 GW portfolio of four utility-scale solar power projects. Out of the total funding, $800 million was raised in tax equity in a partnership with J.P. Morgan Bank of America, Morgan Stanley Renewables Inc., and Truist Bank for the Orion I, Eiffel, Orion II, and Orion III projects, respectively.
Mitsubishi UFJ Financial Group led the financing for the Eiffel and Orion II projects, while Mizuho Americas primarily funded Orion me and III. Additional financial institutions involved in the projects include ING Group, Sumitomo Mitsui Banking Corporation, Fifth Third Bank, and Société Générale. SB Energy successfully secured funding for three of its utility-scale projects by leveraging the ‘domestic content adder’ provision established by the Inflation Reduction Act to bolster the U.S. manufacturing sector.
To qualify for this provision, SB Energy committed to deploying 1.1 million high-domestic content solar modules produced in Ohio by First Solar. Nextracker will supply the projects with trackers, sourced from recently expanded component providers in Pennsylvania, Nevada, and Tennessee.
The steel structures for these projects will be constructed using domestically sourced steel from Texas and Georgia. SB Energy is also exploring various tax incentives and innovative tax equity approaches, including transferability under the IRA, to optimize its financing strategy.
Rich Hossfeld, S.B. Energy Co-CEO, said, “The IRA’s domestic content and energy community incentives were designed to expand America’s manufacturing base and create good-paying jobs in communities that need them. We are thrilled to be the first company to reach financial close on projects that utilize these adders with our partners, J.P. Morgan Chase, Bank of America, Morgan Stanley Renewables Inc., and Truist Bank. S.B. Energy commends our tax equity partners’ industry leadership in clean energy deployment and supporting American workers.”
