Texas solar project developer closes $185 million tax equity financing

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Advantage Capital announced it has committed a $185 million investment in Sabanci Renewables, developer of the Cutlass Solar II project in Texas. 

The Fort Bend County project is a 272 MWdc utility-scale project currently under construction about 40 miles southwest of Houston. Once completed, the project will participate in the Electric Reliability Council of Texas (ERCOT) marketplace. 

The project is expected to reach commercial operations in April 2024. It is comprised of over 500,000 solar panels spanning over 1,000 acres of land. It is expected to produce enough electricity to power more than 80,000 Texas homes. The solar facility is expected to help mitigate energy supply security concerns, which have been an acute problem in the hot summer months in the growing Houston metro area. 

Advantage Capital’s tax equity investment leverages the federal Investment Tax Credit and will provide external capital necessary for Sabanci to complete construction of the project. 

“We are happy to partner up with Advantage Capital in our first renewable energy project in the U.S. and proud to demonstrate our execution capabilities in such a competitive market under such a challenging environment,” said Ismail Bilgin, chief executive officer, Sabanci Renewables. 

Allen & Overy and Husch Blackwell served as counsel for Advantage Capital on the transaction, and Troutman Pepper and Duggins Wren Mann & Romero served as counsel for Sabanci Renewables. Carbon Reduction Capital (CRC), formerly known as CohnReznick Capital, also served as Sabanci’s financial advisor. 

Advantage Capital works with renewable energy developers, providing tax-advantaged financing for projects across the U.S. In recent years, the company has invested in over 100 non-residential projects, including commercial and industrial, community solar, and utility-scale projects, in addition to more than 10,000 residential rooftop systems throughout the U.S. and its territories. 

Sabanci Renewables is a subsidiary of Sabanci Holding, a Turkish conglomerate founded in 1967. Sabanci has a 4 GW diversified power generation portfolio in Turkey. Its U.S.-focused Renewables arm targets 1 GW of renewables in its portfolio by the end of 2025. With Cutlass II and its second utility-scale solar project investment, Oriana Solar, Sabanci Renewables owns 500 MW of capacity under construction.

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