OYA Renewables says it has received $216 million in financial support for the construction of 15 community solar projects in New York.
Of the total financing, USD 145 million is secured as a fixed-term construction loan. CIT Power and Energy served as lead, coordinating a syndicate of participating banks that included Amalgamated Bank, Siemens Financial Services Inc., Comerica Bank and Cadence Bank.
OYA received an additional $71 million in project financing with Monarch Private Capital (MPC) as a tax equity investment. With the investment, MPC will participate in the financing of OYA’s 2023 slate projects through its ESG-oriented impact funds. As a result, MPC’s investors receive a federal tax credit through its funds in proportion to their level of ownership and see potential positive cash flow when the solar projects are underway. Several of the projects located in low-income communities are eligible for an additional tax credit of up to 20 percent, bringing the total number of potential credits from 30 percent to as much as 50 percent.
“The level of financial support we have received through these commitments is another significant milestone for OYA. It will not only add significantly to our asset base but also further our transition from being a developer to an independent power producer,” says Manish Nayar, Chairman and Founder, OYA Renewables. “Such investments from progressive banking partners are critical in the financing of renewable energy projects. Without them, we would not be a major force in the New York solar market, and the US energy transition would not have been able to achieve the incredible momentum it is seeing now.
The project group financed by the combined deals is expected to produce almost 100 MW DC of renewable energy.