Sol Systems Secures $675M For Solar, Storage Projects

In a strong vote of confidence in the U.S. clean energy industry, Sol Systems, an industry-leading developer and operator of renewable energy projects, has closed a $675 million revolving construction finance facility. The capital will play a key role in speeding up the company's pipeline of utility-scale solar and energy storage plants across the nation, with a focus on Illinois, Ohio, and Texas.

Established in 2008, Sol Systems grew through the years to become a dominant force in the U.S. clean energy sector. The company owns, develops, and manages solar and storage assets with an overall portfolio of about 7 gigawatts (GW) in 38 states. The newly acquired financial building is an important milestone in the company's shift towards further expansion of its Independent Power Producer (IPP) platform as well as the provision of cleaner energy solutions on a broader national level.

The $675 million revolving construction line will be an elastic and strategic source of capital, available to fund several facets of project development and delivery. These include funding construction loans, tax equity bridge loans, and issuing letters of credit—key facets that infuse financial liquidity and stability into the life of the project. First, the company will build 500 megawatts (MW) storage and solar capacity across three of Illinois, Ohio, and Texas major states. All of these are to be commissioned in the fourth quarter of 2026.

The facility is a game-changer in the operational capability of the company, Sol Systems Chief Financial Officer Richard Romero asserts. "This facility represents a major advancement in the expansion of Sol's operating platform. It provides us with the necessary capital to execute consistently and effectively clean energy projects across the country," Romero said. He also thanked the financial investors and lenders of the company, stating that they shared a collective effort to build momentum toward clean energy.

The round of funding was championed by KKR Capital Markets, the global alternative investment firm KKR's lending platform, which had earlier invested heavily in Sol Systems in 2021. Some prominent financial institutions that are part of the syndicate of lenders include Banco Bilbao Vizcaya Argentaria (BBVA), ING Capital LLC, Intesa Sanpaolo S.P.A., National Australia Bank Limited, NatWest, and Natixis. The participation of so widely and internationally known a group of finance institutions reflects the faith in the business model of Sol Systems and increasing demand for clean energy as a sound long-term investment.

Dan Diamond, Sol Systems' Chief Development Officer, referred to long-term market forces fueling sustained investor demand in the clean energy market. "We have observed long-term energy supply and demand market forces continue to fuel investment into renewables," he said. "Customers continue to utilize utility scale solar for cleaner, faster, cheaper generation supply. This substantial financing positions for growth of our IPP platform."

The news comes at the height of a lightning-fast era of change for the U.S. renewable energy sector, driven by policy, investor appetite, and increasing corporate and consumer demand for cleaner solutions. Solar energy, in particular, continues to fuel increasing adoption, as it presents not only a cleaner way to generate power relative to fossil fuels, but increasingly competitive economics. Along with energy storage facilities, these projects can potentially create more secure and resilient electricity grids—especially in states like Texas where grid unreliability has been an issue in recent times.

Sol Systems' investment in solar and storage assets also forms part of larger national objectives of decarbonization, energy independence, and job creation. Such programs are capable of not only diminishing greenhouse gas emissions but also benefitting local economies through the generation of engineering, construction, and sustained operating employment opportunities.

Sol Systems' emphasis on Illinois, Ohio, and Texas as a business strategy reflects a thoughtful focus on regional energy demand and market opportunity. There is a unique energy profile emanating from each of these states—Texas's deregulated, fast-changing grid, to Ohio and Illinois's transition markets eager to integrate more renewables. The 500 MW of new capacity enabled with this financing will play a major role in regional energy mixes with both environmental and economic benefits.

As the world's urgency to act on climate grows, Sol Systems' capacity to tap into meaningful capital for the development of renewable infrastructure is a resounding vote of confidence in the clean energy future. With this added capital, the company is well-suited to implement its ambitious vision and remain a prominent force in America's shift towards a cleaner, more sustainable energy system.