Recurrent Energy, Bank of America in $103M North Fork deal.

By Oliver Townsend Jun 28, 2024
Recurrent Energy and Bank of America Sign $103 Million Tax Credit Facilitation Agreement for North Fork Solar Project.jpegOrginal image from:

Recurrent Energy, a subsidiary of Canadian Solar, has recently signed a $103 million tax credit facilitation agreement with Bank of America for the North Fork Solar Project in Oklahoma. This collaboration represents Recurrent Energy’s first production tax credit (PTC) transaction and their inaugural tax credit transfer transaction. By transferring tax credits to Bank of America, Recurrent Energy aims to access funding more efficiently, taking advantage of the IRS’s recent final guidance on clean energy tax credit transfers.

Enhancing Funding Efficiency Through Tax Credit Transfer

This groundbreaking agreement between Recurrent Energy and Bank of America signifies a new chapter in renewable energy financing. By utilizing tax credit transfer mechanisms, Recurrent Energy can streamline their funding process, ultimately accelerating the development and implementation of sustainable energy projects. This strategic partnership exemplifies the evolution of financial models within the renewable energy sector, showcasing innovative ways to support clean energy initiatives.

Empowering Communities Through Sustainable Energy

The North Fork Solar Project in Oklahoma is a significant milestone in the region’s renewable energy landscape. With a capacity of 120 MWac, this project covers 1,012 acres in Kiowa County and is poised to power approximately 35,000 homes. By introducing solar energy to the Oklahoma Municipal Power Authority’s energy portfolio, Recurrent Energy is not only diversifying energy sources but also providing member cities with more sustainable options for their residents.

Promoting Sustainable Practices Through Solar Innovation

The construction of the North Fork Solar Project, led by Blattner, commenced in August 2023 and concluded in June 2024. Throughout the development and construction phases, Recurrent Energy prioritized sustainability by minimizing soil disruption and implementing eco-friendly practices. By preserving and redistributing topsoil, the project aimed to promote rapid ground cover growth, showcasing a commitment to environmental stewardship.

Community Impact and Long-Term Sustainability

As the North Fork Solar Project transitions into operational status, it is projected to contribute approximately $26 million to community services. This financial support underscores Recurrent Energy’s dedication to fostering economic growth and social development in the regions where they operate. By engaging with local initiatives and organizations, Recurrent Energy reinforces its commitment to creating a positive impact beyond the realm of renewable energy.

Strategic Collaborations and Future Growth

Recurrent Energy’s partnership with Bank of America represents a strategic alignment of shared values and goals in the sustainable energy sector. By leveraging financial expertise and industry knowledge, both entities are driving innovation and progress in renewable energy financing. As the North Fork Solar Project sets a new standard for solar initiatives in Oklahoma, this collaboration paves the way for future growth and advancements in the renewable energy landscape.

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