The capital will support an estimated 96 MW of C&I and community solar projects spanning more than nine states
Represents Radial Power’s inaugural tax equity financing transaction
December 20, 2023 — Radial Power announced today that it has closed on $80 million in tax equity financing from Bank of America to support the company’s pipeline of distributed generation projects through late 2024, encompassing both asset and portfolio-level turn-key integrated commercial & industrial (C&I) and community solar solutions.
This tax equity capital raise, alongside backleverage, will help fund the development and installation of an estimated 96 MW of C&I and community solar projects, across more than nine states and for multiple anchor real estate customers.
“This strategic investment will support Radial Power’s robust pipeline of low-cost, low-carbon clean energy solutions that enable offtakers to meet their ESG and sustainability goals,” said John M. King, Chief Financial Officer of Radial Power. “Our national portfolio of best-in-class distributed generation projects is unlocking revenues from underutilized real estate, delivering value to our customers, and accelerating a reliable U.S. energy transition.”
This deal marks the inaugural tax equity financing Radial Power has closed with Bank of America, a leader in renewable energy tax equity financing with a portfolio of approximately $13.5 billion at the end of 2022. Bank of America’s investments have contributed to the development of approximately 40.7 gigawatts of total installed renewable wind and solar energy capacity in the U.S. In addition to utility scale renewable projects, Bank of America has also provided financing for distributed solar generation for residential and commercial/industrial customers and for electric vehicles, and has a portfolio comprised of 176 wind farms, 59 solar farms and over 160,000 rooftop installations.
“We are proud to support Radial Power in this latest milestone. The tax equity transaction underscores Bank of America’s commitment to mobilize and deploy $1.5 trillion in sustainable finance capital by 2030, and to support the scalable and affordable delivery of clean, local power to communities, businesses and individuals,” said Danielle King, Director in the Global Sustainable Finance Group at Bank of America.
Latham & Watkins acted as legal counsel to Radial and Milbank to Bank of America.
About Radial Power
Radial Power is a privately-owned, developer-owner-operator of distributed clean energy assets across large real estate portfolios. Founded in 2022, Radial Power assists owners of large real estate portfolios develop programs across multiple U.S. state and utility regulatory jurisdictions to achieve their ESG, climate, and renewable energy objectives. Radial Power provides its partners and customers with both asset and portfolio-level turn-key integrated commercial & industrial solutions, including developing, owning, and operating photovoltaic solar, BESS, and EV charging solutions. Radial Power is jointly owned by investment affiliates of energyRe and Lotus Infrastructure Partners and has offices in Houston and New York. For more information, visit www.radialpower.com
About Bank of America
Bank of America is one of the world’s leading financial institutions, serving individual consumers, small and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience in the United States, serving approximately 69 million consumer and small business clients with approximately 3,900 retail financial centers, approximately 15,000 ATMs (automated teller machines) and award-winning digital banking with approximately 57 million verified digital users. Bank of America is a global leader in wealth management, corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. Bank of America offers industry-leading support to approximately 4 million small business households through a suite of innovative, easy-to-use online products and services. The company serves clients through operations across the United States, its territories and more than 35 countries. Bank of America Corporation stock is listed on the New York Stock Exchange (NYSE: BAC).