Primergy Solar LLC announced it has closed commitments for $588 million in debt financing for a 408 MW solar project in Hill County, Texas, south of Dallas. The project’s full capacity will be tied to Microsoft via a long-term power purchase agreement. The 408 MW project, though becoming more commonplace in Texas, would represent the largest solar project in most states in the U.S.
Ash Creek solar is located near several existing fossil fuel plants and near high energy demand sites. Once complete, the project is expected to generate the equivalent electricity demand of 90,000 homes per year, though it will be fully dedicated to Microsoft.
“Ash Creek aligns with Primergy’s mission to invest in well-located projects that offer regional diversity to our portfolio and serve the needs of leading corporate customers,” said Ty Daul, chief executive officer, Primergy.
Primergy acquired Ash Creek Solar in 2021, purchased from original developer Orion Power Generation, a partnership between Orion Renewable Energy Group and Eolian.
The project was financed via a construction loan, tax credit transfer bridge loan, and related letters of credit. Investment was led by MUFG Bank, Ltd. and SMBC as lead structuring arrangers. Seven additional firms operated as coordinating lead arrangers, and Latham & Watkins LLP acted as Primergy’s legal counsel, while Skadden Arps Slate Meagher & Flom served as lender’s counsel.
SOLV Energy, among the leading utility-scale solar contractors, was engaged as engineering, procurement, and construction partner. Construction has commenced and is supporting approximately 350 local full-time construction jobs. Six full-time permanent positions will remain to maintain the plant.
Primergy worked alongside local leaders, school districts, and over 20 landowners in the development process. Over its life, the project is estimated to provide $100 million in tax payments to Hill County while substantially increasing the tax base of local school districts.
“Large-scale solar projects have a ripple effect that strengthens communities,” said George Hershman, chief executive officer of SOLV Energy. “Ash Creek Solar represents a long-term investment in Hill County that will generate revenue for local schools and services.”
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Funny the lead picture of this article is of solar panels in the desert, not of the ask creek panels that are destroying fertile farm land and neighboring property values.