Renewable energy provider and independent power producer Pivot Energy has secured a $200m tax credit purchase commitment.
This will be expended to support its 40-project community solar portfolio, which has a combined capacity of 144 megawatts defined conditions (MWdc) across eight states.
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The financial backing is crucial for the development of affordable and sustainable electricity solutions for thousands of residential and commercial subscribers.
The tax credit commitment, facilitated through Acadia’s Climate and Communities Investment Coalition (CCIC), complements recent financing commitments exceeding $450m from HASI, First Citizens Bank and ATLAS SP Partners.
The CCIC is dedicated to ensuring that corporate energy investments yield tangible community benefits.
Pivot Energy CEO Tom Hunt stated: “This tax credit purchase agreement reinforces that the energy transition can be both scaleable and community focused.
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By GlobalData“We are thrilled to grow our partnership with Acadia and bring more solar energy to US communities.”
The 40 solar projects will channel funding into incremental community benefit investments, managed by the Sustain Our Future Foundation.
Acadia managing partner Tim Short stated: “We are proud to have supported Pivot Energy in advancing one of the largest community solar portfolios in the United States.”
The community solar portfolio will deliver affordable electricity to communities in Colorado, Delaware, Hawaii, Illinois, Maryland, Minnesota, New York and Virginia.
The projects lower energy costs, create jobs, generate tax revenues and fund high-impact community programmes.
Acadia vice-president Brian O’Callaghan stated: “By facilitating this commitment through the CCIC, we’re helping direct corporate capital to projects that deliver tangible benefits to local communities — like job creation, economic growth and access to renewable energy.”
These programmes are aimed at developing infrastructure for community resilience, expanding workforce training, enhancing educational opportunities, increasing energy bill savings for low-income subscribers and providing support to community-based organisations.
The first projects will commence commercial operations in the third quarter of 2025.
In a related development, in August 2024 Pivot Energy announced a five-year framework agreement with Microsoft.
This agreement will enable the development of up to 500MW of community-scale solar energy projects across the US between 2025 and 2029.
Microsoft will purchase the renewable energy credits from these projects for a 20-year term, with the first projects expected to begin at the end of 2025.
