US solar developer Origis Energy has recently secured a substantial $136 million in construction financing and term loan conversion from Mitsubishi UFJ Financial Group (MUFG) for its Rice Creek Solar project, located in Florida.
This critical financing will support the final stages of development for the project, which is on track for completion in the near future. The Rice Creek Solar initiative is set to boast a robust 75 megawatt (MW) installed capacity and has been contracted with the Florida Municipal Power Agency (FMPA).
Under this agreement, FMPA will purchase the power generated by the plant, while Origis Energy will retain ownership and operational control of the facility.
Biggest Solar Initiatives in the Nation
The Rice Creek Solar project is a key component of a larger 600 MW solar photovoltaic (PV) portfolio, developed in partnership with FMPA and several municipal utilities across Florida. This portfolio is strategically divided into two phases. The Rice Creek Solar project represents the initial phase, with its successful deployment paving the way for the second phase. The subsequent phase aims to add an additional 300 MW of solar capacity, with associated projects scheduled for completion in 2025 and 2026.
Rice Creek Solar is poised to qualify for an Energy Community Adder to Investment Tax Credits (ITC) under the Inflation Reduction Act (IRA). This additional incentive is notable for Florida-based solar projects, made possible by the project’s location near a recently decommissioned coal power plant within the same census tract. The facility is expected to power approximately 14,000 homes and reduce CO2 emissions by 74,000 metric tons annually.
These environmental benefits, along with the economic impacts, further enhance the value of the project and Origis Energy’s growing solar portfolio in Florida, which is approaching one gigawatt of installed capacity. Specifically, the project is expected to qualify for an Energy Community Adder to investment tax credits (ITC), enhancing its financial viability and appeal.
Earlier in the year, Origis Energy also made significant strides in securing funding for other solar projects. The company obtained $317 million in tax equity funding for solar installations in New Mexico and Mississippi, collectively totaling 350 MW in capacity.
This funding leverages the ITC and production tax credit incentives offered by the IRA. The New Mexico project, like Rice Creek Solar, is situated near a retired coal power plant, capitalizing on similar incentives. Additionally, in December, Origis Energy acquired $344 million from MUFG for a 200 MW solar project in Mississippi.
Final Thoughts
Through these projects, Origis Energy continues to advance its commitment to renewable energy, leveraging financial incentives and strategic partnerships to expand its portfolio and contribute to a greener energy future.
How can we help you?
Searching for an opportunity in the construction industry? Contact The Birmingham Group’s team of seasoned commercial construction recruiters today to discuss your career path or browse our open positions.
Are you a hiring authority in need of construction talent? Submit a search request today.
