DSD Renewables (DSD) has secured a $40 million tax equity investment from U.S. Bank to support its 2022 and 2023 build plans.
The financing will fund a 45 MW portfolio consisting of a mix of community solar, power purchase agreement and feed-in-tariff projects. About half of the projects are located in New York, with the remaining projects scattered across Connecticut, Maine, Maryland, Minnesota, New Jersey and Virginia.
By the end of the year, DSD will have raised over $1.5 billion in funding to accelerate solar project deployment in 22 states.
“This tax equity investment will help DSD optimize value for many key projects under development and enable us to continue supporting the energy transition across the U.S.,” says Hannah McGovern, DSD’s VP of structured finance. “We are excited to be partnering with U.S. Bank and look forward to expanding our work together in the future.”
The tax equity financing represents DSD’s first transaction with U.S. Bank, which commits $1 billion annually to renewable energy investments and has set a goal to achieve net zero greenhouse gas emissions by 2050.
McDermott Will & Emery LLP served as counsel to DSD on the transaction.