Ørsted Secures $680 Million Tax Equity Financing from J.P. Morgan for Solar and Storage Projects

Ørsted, a leading U.S. clean energy developer, announced a $680 million investment from J.P. Morgan in tax equity financing for a portfolio of solar and storage assets in Texas and Arizona. The project portfolio consists of the 300 MW Eleven Mile Solar Center with 300 MW/1200 MWh of storage in Arizona, and the 250 MW Sparta Solar project in Texas. This represents one of the largest solar and storage tax equity transactions utilizing both production tax credits (PTCs) and investment tax credits (ITCs) since the passage of the Inflation Reduction Act (IRA) in 2022. The Eleven Mile Solar Center will receive a one-time ITC for its battery storage system, while the solar farms will generate PTCs over 10 years. The tax equity partnership with J.P. Morgan includes the option for tax credit transferability, a new provision created by the IRA that allows corporate buyers to support clean energy projects and optimize their federal tax bills. Ørsted is an experienced renewable energy developer, and this agreement builds on J.P. Morgan’s existing investments in Ørsted’s 5.7 GW onshore portfolio in the U.S. By the end of 2024, Ørsted will have 2 GW of solar projects across the country, including the Sparta Solar project which is part of their first co-located wind and solar project. These solar projects are expected to contribute $125 million in tax revenue over their lifetimes to support local communities. Resources: https://esgnews.com/orsted-secures-680-million-tax-equity-financing-from-j-p-morgan-for-solar-and-storage-projects/