With a strong regulatory environment supporting the solar PV industry in the US under President Joe Biden, the country's solar market is increasingly attracting huge investments – Silicon Ranch Corporation recently conducted a $600 million equity raise and Sunrun secured $835 million non-recourse financings.
Renewable energy developer Silicon Ranch says the $600 million equity raise includes $375 million closed in December 2022 that was led by its existing shareholders including Manulife Investment Management, TD Asset Management, on behalf of TD Greystone Infrastructure Fund and Mountain Group Partners. It expects an additional $225 million to fund in early 2023.
The company counts as having secured over $1 billion in new equity capital in 2022, including $775 million raise announced early last year. It aims to grow the team in 2023 to support its EPC segment for contracted pipeline, and also operate and maintain the portfolio.
Another US company, leading residential solar and storage systems installer Sunrun has raised $835 million non-recourse financing to help it support a portfolio of 335 MW of leases and power purchase agreements (PPA).
Of the amount raised by Sunrun, $600 million non-recourse syndicated bank facility will back the 335 MW portfolio. It comprises $375 million amortizing loan and $25 million debt service reserve letter of credit (DSR LC).
Additionally, it raised a $235 million non-recourse subordinated financing that it says has increased the cumulative advance rate obtained by the company. According to the management, the cost of the non-recourse subordinated financing is consistent with Sunrun's existing subordinated debt financing facilities.
All facilities closed on December 23, 2022, it added. "The Senior Loan priced at an initial credit spread 100 basis points below recent Solar Loan asset-backed securitization transactions observed in the sector, while delivering a cumulative advance rate above our prior guidance range of 75%-85%," said Sunrun's Chief Financial Officer, Danny Abajian.
Not only on the downstream side, the US Inflation Reduction Act (IRA) is triggering huge investments in the solar upstream segment, which is basically not existing today in the country (see US Attracts $40 Billion Clean Energy Investments In 3 Months). A total of 22 GW new solar cell or module manufacturing capacity in the form of 12 new solar production facilities have been announced in the US since August 16, 2022 when the US government cleared its Inflation Reduction Act (IRA), according to the American Clean Power Association (ACP).
This 22 GW represents more than 300% increase in US solar module manufacturing capacity among 20 new clean energy manufacturing facilities announced publicly, as per the Dec. 2022 published ACP report Clean Energy Investing in America.
According to the report, overall more than $40 billion of new grid-scale clean energy investments have been announced, the same as total investment estimated for all clean energy projects installed in 2021—split evenly between utilities and independent power producers (IPP) since the IRA was passed; and ist quickly getting more (see Inflation Reduction Act 2022 Now A Law).