Proceeds to support construction of company’s largest standalone BESS project to date, community solar projects
New York, NY, December 14, 2023 – Greenbacker Capital Management (“GCM” or “Greenbacker”), a leading renewable energy asset manager, has entered, through an affiliated investment vehicle, into a $92 million financing agreement with BMO, who served as both lender and the administrative agent for the deal. Wilmington Trust served as collateral agent and depositary agent.
The financing package includes a construction to term loan, a tax equity bridge loan, a term loan commitment, and a letter of credit facility. The proceeds from the construction loan and tax equity bridge loan will be used to finance the construction of the Holtville battery energy storage system (BESS), Greenbacker’s largest standalone battery energy storage asset to date. Holtville’s 30 MW power capacity and up to 120 MWh energy storage capacity means the project will be able to power approximately 16,200 homes1 for a six-hour period, on average. The project has a long-term contract in place with an investment-grade offtaker. The term loan will support the construction of a portfolio of community solar projects in the northeastern US. All portfolio projects are expected to enter commercial operation in 2024.
Holtville is compliant with the Equator Principles, a voluntary framework adopted by members of the financial industry, including BMO, to responsibly evaluate the environmental and social impacts of the projects they finance.
BESS projects are an essential component of the clean energy transition, particularly as demand for2—and investment in3—renewables continues to increase. They can contribute to both lower energy costs for consumers and improved resilience for the grid, as they store power that can be deployed during times of peak demand or power outage.
Community solar is helping expand access to clean energy by providing the opportunity for residential and commercial subscribers to utilize solar power without the cost and logistics of installing their own rooftop arrays. Subscribers can also lower their power bills by receiving credits for the energy generated by their share of the community solar project.
Greenbacker was advised on the deal by the Stoel Rives law firm. Paul Hastings LLP served as legal advisor to BMO. Wilmington Trust was advised by Bryan Cave Leighton Paisner law firm.
1 Frequently Asked Questions (FAQs) – U.S. Energy Information Administration, US Energy Information Administration.
2 International Energy Outlook 2023 – U.S. Energy Information Administration, US Energy Information Administration.
3 Renewable Energy Investment Hits Record-Breaking $358 Billion in 1H 2023, BloombergNEF, Meredith Annex, August 21, 2023.
