OYA Renewables closes financing for New York community solar pipeline

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OYA Renewables, a energy transition solutions platform, secured a total of $216 million in financial backing for the construction of a slate of 15 community solar development projects throughout New York State, part of its 2023 pipeline.

Of the total financing, $145 million is a construction-to-term loan, with CIT Power and Energy acting as lead on the loan. It was coordinated by a group of participating banks including Amalgamated Bank, Siemens Financial Services, Comerica Bank and Cadence Bank.

OYA secured an additional $71 million in project funding with Monarch Private Capital (MPC) in the form of a tax equity investment. MPC participate in the funding of OYA’s slate of 2023 projects through their ESG-oriented impact funds, and its investors can receive a federal tax credit through its funds when the solar projects are up and running. Several of the projects located within low-income communities will qualify for additional Inflation Reduction Act tax credits of up to 20%, bringing the potential credits to as high as 50%. 

“The level of financial backing we’ve secured via these commitments is another major milestone for OYA. Not only does it significantly increase our asset base, it also advances our transition from being a developer to an independent power producer,” said Manish Nayar, chairman and founder of OYA Renewables. “These types of investments from highly progressive banking partners are critical to the financing of renewable energy projects. Without them, we wouldn’t be the major force we are in the NY community solar market and the US energy transition could not have generated the incredible momentum it’s seeing now.”

The slate of projects being funded are located throughout New York State and are expected to generate almost 100 MWdc of renewable energy per year once complete. Subsequent pipeline projects that OYA has planned for 2024 are currently in preconstruction or late stage permitting.

OYA Renewables is a solar developer with offices in Toronto, Boston and India. Founded in 2009, the company has developed over 1.4 GW  of solar currently deployed in community solar and utility markets and has a pipeline of 9 GW of distributed and utility-scale solar projects across North America. OYA has been certified by both the Canadian Aboriginal and Minority Supplier Council and the New York & New Jersey Minority Supplier Development Council as a diverse supplier.

OYA has made a significant community solar development push in New York in recent years. Last year the company closed on an exclusive co-development agreement with Omni Navitas to develop, construct, and own 600 MW of community solar projects across the Northeast U.S., at least 240 MW of which will be located in New York.

New York remains one of the major markets for community solar in the United States, passing 1 GW of installed capacity in March 2022. The state has a goal of reaching 70 % of electricity generation from renewable resources by 2030. New York also targets 10 GW of solar by the 2030 deadline.

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