8minutenergy Renewables, LLC , an independent solar developer in the U.S., today announced the closing of debt and tax equity financing for its 26 megawatt Redwood 4 Solar Farm located in Kern County, California. The company also announced that project construction has begun, and is expected to be completed later this year. Redwood 4 is the fourth 8minutenergy project in the combined 100 megawatt Redwood solar cluster near Bakersfield.
Although terms of the transaction are not being disclosed, Zions Bancorporation (NASDAQ: ZION) is providing the project’s construction debt and bridge loan, while U.S. Bancorp (NYSE: USB) is providing the tax equity investment. 8minutenergy will maintain ownership under the terms of the deal. Pacific Gas and Electric Company (“PG&E”) has entered into an agreement to purchase the clean energy produced by Redwood 4, and the plant is being built as a dedicated resource for PG&E’s Solar Choice program.
8minutenergy’s three other projects in the Redwood solar cluster have been operational since the end of 2015, and are now owned by sPower. Upon completion of this fourth farm, the cluster will have a combined annual production capacity of nearly 200 million kilowatt hours (kWh) of electricity – enough energy to power more than 20,000 homes, and reduce carbon emissions by more than 140,000 metric tons each year. Redwood 4’s development and construction is also creating nearly 200 jobs in Kern County.