Duke Energy closes $109.4M in preferred tax equity funding

Duke Energy Renewables has closed of $109.4 million in a preferred tax equity funding from Goldman Sachs’ Alternative Energy Investing Group.

The investment will be used over 18 months to finance a diverse portfolio of approximately 75 megawatts of solar and solar plus storage projects, to be developed and installed by REC Solar subsidiary of Duke Energy Renewables.

Projects will include commercial and industrial ground-mount and rooftop projects, as well as community solar projects in several states like Arizona, California , Colorado, Hawaii, Massachusetts and Texas.

The investment structure of Goldman Sachs, which monetizes both the cash and tax attributes created by the ventures, is ideally suited to fund broad, dispersed renewable asset portfolios.

“Goldman Sachs’ investment will support Duke Energy Renewables’ continued growth in the distributed energy space, which will further our goals of delivering long-term value to customers and investors. This is just one more way we’re providing reliable and cost-effective renewable energy to businesses and communities across the United States.

Chris Fallon, president of Duke Energy Renewables.

“Our partnership with Duke Energy Renewables demonstrates the benefits of an integrated approach to financing high-quality distributed solar projects at scale. By combining the financing of tax and cash attributes into a single product, Goldman Sachs is able to provide sponsors like Duke Energy Renewables with comprehensive and flexible financing solutions tailored to each individual portfolio’s needs.”

Vivek Kagzi, of Goldman Sachs’ Alternative Energy Investing Group.

The portfolio includes behind-the-meter and utility-scale installations that will provide power through long-term Power Purchase Agreements (PPAs) to a wide range of private sector and public sector clients.

NextPower Capital acted as the financial advisor to Duke Energy Renewables and REC Solar, and Hunton Andrews Kurth and O’Melveny & Myers were the transaction legal counsels for Duke Energy Renewables and Goldman Sachs, respectively.