Lightsource bp secures tax equity for 481 MW of US solar

Lightsource bp, the UK-based solar developer half-owned by BP Plc (LON:BP), today said it has closed a tax equity deal with US bank Wells Fargo (NYSE:WFC), securing a USD-267-million (EUR 246m) investment for a 481-MW solar portfolio in the US.

The funding will back the construction and operation of the 346-MW Oxbow solar project in Pointe Coupee Parish, Louisiana and the 135-MW Conway solar project near Happy, Arkansas. Both are due to come online starting in 2023, the developer said. The Louisiana solar park will sell electricity to McDonald’s and eBay, while the Arkansas array will provide energy to Conway Corp.

The tax equity investment adds to Lightsource bp’s sponsor equity and the debt financing package completed in December 2021.

The transaction leverages the Production Tax Credit (PTC) structure for solar in the US 2022 Inflation Reduction Act.

“The new tax credit options and stable policy environment for job growth made possible by the Inflation Reduction Act will further incentivise investment and spur the growth of America’s solar industry,” said Kevin Smith, Lightsource bp’s chief executive of the Americas.

(USD 1 = EUR 0.923)

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