Arevon Secures $98 Million Tax Equity Commitment for Ratts 1 and Heirloom Solar Projects in Indiana

Arevon Energy’s Solar Investment in Indiana

Arevon Energy, a leading American renewable energy developer, has secured a $98 million tax equity commitment from Fifth Third Bank. The funds will support the Ratts 1 and Heirloom solar projects currently under construction in Pike County, Indiana. Once completed, these projects will contribute 265 MWdc to the local energy grid and expand Arevon’s footprint in the Midcontinent Independent System Operator (MISO) territories. This deal underscores Arevon’s ongoing efforts. Specifically, it highlights the company’s goal to grow its renewable energy portfolio in the U.S.

The Ratts 1 Solar Project, with a capacity of 192 MWdc, and the 73 MWdc Heirloom Solar Project are expected to be fully operational later this year. Together, they represent an investment of nearly $400 million, which has a significant local economic impact. Over the course of their operational lifespans, the projects are set to contribute over $86 million to local governments. This money will be for schools, infrastructure, and public services. Furthermore, the projects have generated approximately 200 full-time equivalent jobs and spurred spending in local businesses.

Strategic Collaboration and Financial Growth

This financing commitment is a major milestone for Arevon, marking the first partnership with Fifth Third Bank. This collaboration is under the Inflation Reduction Act’s (IRA) tax credit transfer provision. Denise Tait, Chief Investment Officer at Arevon, highlighted that the partnership with Fifth Third Bank exemplifies the successful financial structuring of renewable energy projects. Arevon’s total financing over the past 18 months exceeds $3.8 billion. This amount includes a range of new solar and energy storage initiatives across the country.

Arevon has continued its strong growth in the Midwest with other ongoing projects. Last year, the company announced the start of construction for the Posey Solar Project and the Gibson Solar Project, both in Indiana. Additionally, Arevon is advancing the 430 MW Kelso Solar Project in Missouri and the 124 MW Big Muddy Solar Project in Illinois.

SuperMetalPrice Commentary:

The tax equity financing secured by Arevon for the Ratts 1 and Heirloom Solar Projects is a critical step. It advances the company’s clean energy portfolio. With the growing demand for renewable energy, this deal emphasizes the importance of financial flexibility and innovative capital structures in the clean tech industry. As Arevon continues to expand its renewable energy projects across the U.S., it sets a strong example. Specifically, it provides a model for other developers looking to leverage the benefits of the IRA and other financial incentives. This effort will help to accelerate the transition to a sustainable energy future.