NEW YORK--(BUSINESS WIRE)--Scale Microgrids ("Scale") has closed a major tax equity transaction with Truist Bank to support the construction of new distributed energy assets across the U.S. Under this partnership, Truist will provide a tax equity investment of up to $150 million.
The Truist tax equity facility will help Scale finance the construction of microgrid projects for commercial and industrial customers representing a variety of industries, as well as community-scale solar and battery storage facilities. These projects will be built over the next 18 months across multiple states with strong market opportunities including California, Connecticut, New York, and Pennsylvania.
"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," said Julian Torres, Chief Investment Officer at Scale. "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."
"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," said Chris Nygren, Head of Tax Equity for Truist Bank. "This investment demonstrates Truist's ongoing work to inspire and build better lives and communities."
The Truist partnership adds significantly to Scale's capital resources, building on previous partnerships with institutional investors including 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. Scale has also accessed the tax credit transfer market in a partnership with Captona. Having both partnership and tax credit transfer capabilities enables Scale to offer flexible solutions to optimize every layer of the capital stack for our customers and partners.
About Scale Microgrids: Scale is a vertically-integrated energy company that designs, builds, finances, owns, and operates distributed energy assets that deliver cheaper, cleaner, and more resilient power. Their team accelerates growth in distributed energy by providing financing to project developers, while also directly helping large energy-consuming customers take charge of their energy supply with microgrids that integrate solar, batteries, and other on-site energy assets. Learn more at .
About Truist: Truist Financial Corporation is a purpose-driven financial services company committed to inspiring and building better lives and communities. As a leading U.S. commercial bank, Truist has leading market share in many of the high-growth markets across the country. Truist offers a wide range of products and services through our wholesale and consumer businesses, including consumer and small business banking, commercial banking, corporate and investment banking, wealth management, payments, and specialized lending businesses. Headquartered in Charlotte, North Carolina, Truist is a top-10 commercial bank with total assets of $523 billion as of Sept. 30, 2024. Truist Bank, Member FDIC. Learn more at Truist.com.
Contacts
Media:
Nicole Green
Director, Marketing and Branding
Scale Microgrids
ngreen@scalemicrogrids.com