Ørsted lands $680 million financing for solar, storage in Texas, Arizona.

By Oliver Townsend May 25, 2024
Ørsted Secures $680 Million Tax Equity Financing for Solar and Storage Projects in Texas and Arizona.jpegOrginal image from: https://solarquarter.com/2024/05/25/orsted-secures-680-million-tax-equity-financing-for-solar-and-storage-projects-in-texas-and-arizona/

Renowned renewable energy developer Ørsted recently secured a significant tax equity financing of $680 million for a solar and storage project portfolio in Texas and Arizona. This funding marks a milestone in advancing renewable energy initiatives and supporting the growth of clean energy projects in the United States.

Overview of the Project Portfolio

The project portfolio includes the Eleven Mile Solar Center, a 300 MW solar and 300 MW / 1200 MWh storage project in Pinal County, Arizona, and the Sparta Solar project, a 250 MW solar installation in Mineral, Texas. This collaboration with J.P. Morgan highlights the importance of tax equity financing in supporting renewable energy projects and promoting sustainability.

Tax Equity Investment Details

The tax equity financing facilitated by J.P. Morgan involves production tax credit (PTC) and investment tax credit (ITC) assets under the Inflation Reduction Act (IRA). This partnership allows Ørsted to leverage tax credits for the Eleven Mile Solar Center and the Sparta Solar project, contributing to the growth of renewable energy infrastructure in the region.

Benefits of the Tax Equity Partnership

Through the tax equity investment, the Eleven Mile Solar Center will receive a one-time investment tax credit for its storage system, while the solar farm will generate production tax credits over a ten-year period. This partnership not only supports Ørsted’s renewable energy goals but also creates opportunities for corporate buyers to invest in clean energy projects.

Impact on Local Communities

The completion of these projects is expected to add 550 MW of solar capacity and 300 MW of energy storage, contributing approximately $125 million in tax revenue over the projects’ lifespan. This revenue will support public services in the local communities and drive economic development in the region.

Commitment to Renewable Energy

Ørsted’s commitment to advancing renewable energy infrastructure is evident in this tax equity financing, demonstrating the company’s dedication to sustainability and clean energy solutions. The successful procurement of funding for these projects underscores the importance of collaborations between financial institutions and renewable energy developers.


The $680 million tax equity financing secured by Ørsted for solar and storage projects in Texas and Arizona signifies a significant step towards achieving renewable energy goals and promoting sustainable development. This partnership with J.P. Morgan highlights the potential for tax equity investments to drive the growth of clean energy projects and support the transition to a more sustainable energy landscape.

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