Through a wholly-owned subsidiary, Greenbacker Renewable Energy Co. LLC has purchased a 26 MW solar project planned in Imperial County, Calif., from Solar Frontier Americas Holdings LLC.
The “Midway III” project is estimated to start construction in January and achieve commercial operation in October. As part of this pre-construction transaction, Greenbacker says, the project has a construction management contract and a module supply agreement in place with Solar Frontier.
Greenbacker adds it is currently in negotiations with a financial institution to provide a construction loan and term loan facility, as well as a tax equity financing arrangement with a large U.S.-based financial institution. After considering the tax equity investment and expected term loan, the net investment by the company is expected to be approximately $9 million. Once operational, Midway III will sell all the power generated to a large California utility through a 20-year fixed-price power purchase agreement, according to Greenbacker.
“Working with Solar Frontier to construct a large-scale solar project in California, as well as two large financial institutions to finance the transaction, is a great investment opportunity for Greenbacker,” states Charles Wheeler, CEO of Greenbacker. “Upon completion in the third quarter of 2018, we see Midway III as another quality asset producing stable and predictable cashflows to the benefit of our investors.”