Scale Microgrids has secured a significant tax equity deal with Truist Bank to fund the development of distributed energy projects across the U.S. Through this partnership, Truist will invest up to $150 million in tax equity. This funding will support the construction of microgrid projects for commercial and industrial clients in various industries, along with community-scale solar and battery storage systems. The projects, which will be built over the next 18 months, will be located in states with strong market potential, including California, Connecticut, New York, and Pennsylvania.
Julian Torres, Chief Investment Officer at Scale, said, “We’re very excited to work with Truist to finance such a diverse portfolio of distributed energy assets with our largest institutional tax equity investment to date. This partnership will enable us to efficiently finance our microgrid and community scale projects to meet the increasing power demands of our customers in this new era of load growth and grid constraints.”
Chris Nygren, Head of Tax Equity for Truist Bank, stated, “Truist is proud to support Scale Microgrids in developing a portfolio of renewable energy projects that will provide clean power to end users such as universities, hospitals, businesses, and communities across the country. This investment demonstrates Truist’s ongoing work to inspire and build better lives and communities.”
The Truist partnership greatly enhances Scale’s financial resources, adding to its previous collaborations with major investors. This includes a $300 million equity investment from Warburg Pincus and a project finance debt facility of up to $225 million from KeyBanc Capital Markets and City National Bank. Additionally, Scale has entered the tax credit transfer market through a partnership with Captona. By combining both partnership and tax credit transfer options, Scale is able to provide flexible solutions that optimize all aspects of capital for its customers and partners.
