Solar energy projects have become more sophisticated ever since technological innovation became heavily integrated into development. Nowadays, companies have the ability to execute projects that would not have been possible through conventional methods when they were the only option available. China and the Asian continent continue to lead the way in solar energy generation. Still, the United States has found a lane in attempting to discover new and advanced ways of solar energy generation that other regions may also adopt. As of late, Foss and Summit Ridge Energy closed $150 million in tax equity financing for community solar projects across Illinois.
The emergence of Foss and Summit Ridge Energy as solar energy leaders
Nowadays, the energy industry is heavily saturated to the point where it is highly difficult for companies to stand out from the rest, especially as the clean energy transition is underway and newer entities are investing millions of dollars into projects. Foss & Company can be recognized as a veteran of the solar sector after having been founded in 1983.
Its longevity is a testament to the company’s ability to adapt to the modern-day ways of energy generation. The company is a national tax equity investor and fund sponsor that, since its establishment, has deployed over $11 billion in tax equity on behalf of insurance, banking, and other large corporate clients into historic rehabilitation projects, renewable energy, and advanced energy production facilities.
Summit Ridge Energy, on the other hand, is the country’s leading commercial solar company that has developed a reputation for developing, owning, and operating distributed energy and battery energy storage systems that deliver locally generated power through a more resilient and secure electric grid. By combining financial innovation and industry-leading execution, the company has become one of the fastest-growing energy companies in America with more than 3 GW of solar and energy storage projects operating and in development.
Foss and Summit Ridge Energy close $150 million tax equity financing for solar projects
A press release from Summit Ridge Energy unveiled that Foss & Company closed a $150 million tax equity investment in Section 48E Clean Investment Tax Credits (ITCs), generated by a portfolio of distributed energy projects located throughout Illinois and owned through a joint venture between Summit Ridge Energy and Apollo Global Management.
The announced transaction extends Foss & Company’s longstanding partnership with Summit Ridge Energy, marking their eighth tax equity transaction collaboratively. Since Summit Ridge Energy launched in 2017, it has raised over $7 billion in project capital to finance more than 250 facilities, delivering energy savings to 60,000+ homes and businesses while supporting American jobs, enhancing local economies, and advancing the nation’s energy independence.
Delving deeper into the Foss & Company and Summit Ridge Energy partnership
Companies that enter partnerships do so with the aim of sharing the financial risks and responsibilities involved in the execution of energy projects. In the companies’ latest collaboration, the portfolio includes projects that qualify for a range of ITC adders, including Domestic Content, Energy Community and Low-Income adders.
Over half of the projects in the portfolio are expected to participate in Illinois’ Adjustable Block Program (ABP), which anchors 15-or 20-year renewable energy credit (REC) streams with creditworthy commercial subscribers.
Looking ahead: How important will Summit Ridge Energy be to future projects?
The company is confident of its place in the energy industry and its ability to shape future projects. Adam Kuehne, Chief Investment Officer of Summit Ridge Energy, stated the following:
“This transaction underscores the strength of our partnership with Foss & Company and our ability to collectively structure sophisticated financings even as the regulatory landscape continues to shift. Successfully navigating the FEOC requirements under the new Section 48E framework on our eighth deal together speaks to the depth of that relationship.”
Interestingly, the closing of the transaction represents one of the industry’s first announced tax equity transactions under Section 48E, needing the firms involved to navigate Foreign Entity of Concern.
Staff Writer
Prince is a versatile writer focused on energy, automotive, environmental, and general news topics. He makes complex technical and policy issues clear, engaging, and accessible for a broad audience.
