American energy developer, owner and operator Arevon Energy has secured a $98m tax equity commitment from Fifth Third Bank to support the development of its Ratts 1 and Heirloom solar projects in Pike County, Indiana, US.
These projects, currently under construction, will collectively add 265MW of new energy for Indiana and are part of Arevon’s expansion in the Midwest/Midcontinent Independent System Operator (MISO) territories.
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The 192MWdc Ratts 1 Solar has secured a long-term power purchase agreement with the Indiana Municipal Power Agency, while Meta will be the offtaker for 73MWdc Heirloom Solar.
Both projects are expected to commence operations in the second half of 2025.
The partnership with Fifth Third Bank leverages the Inflation Reduction Act’s tax credit transfer provision, offering Arevon enhanced capital structure flexibility.
Fifth Third Bank Head of Renewables Jon Stark stated: “Supporting premier platforms like Arevon squarely fits our future growth, and we look forward to continuing to grow our relationship with Arevon as they continue to execute on their high-quality US renewables pipeline.”
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By GlobalDataThe Ratts 1 and Heirloom Solar projects represent a nearly $400m investment and are projected to contribute more than $86m to local governments, benefiting public services and infrastructure.
The construction has created 200 full-time jobs and boosted local businesses.
Arevon chief investment officer Denise Tait stated: “The complex and highly successful structure of this transaction marks another notable financial accomplishment for Arevon. This is a great example of what happens when all the right pieces come together.
“We were proud to work with Fifth Third Bank and our other financing partners on all we have achieved across our projects’ financing packages. The Arevon team’s deep expertise and experience will enable us to continue to innovate on future financial transactions.”
Advisory and legal firms Paragon Energy Capital, Latham & Watkins, and Norton Rose Fulbright played key roles in closing the latest tax equity commitment.
In September 2024, Arevon announced a separate $299m financial close for these projects, marking its first uncommitted tax equity and tax credit transfer bridge loan transaction.
Arevon continues to grow its portfolio in the US Midwest. Notable developments include the commencement of the Posey and Gibson solar projects in Indiana and the advancement of the 430MW Kelso Solar Project in Missouri.
Arevon has secured more than $3.8bn in cumulative project financing for new solar and energy storage developments throughout the US.
