Enlight Secures $340M Tax Equity Deal for Arizona Solar Project
J.P. Morgan, M&T Bank, and First Citizens Bank back the Roadrunner solar and energy storage facility, one of the largest in the state.
Enlight Renewable Energy has secured nearly $340 million in two significant tax equity financing deals for its Roadrunner Solar and Energy Storage project in Arizona, a move that solidifies the financial footing of one of the state's largest renewable energy installations. The company's U.S. subsidiary, Clēnera Holdings, announced the agreements, which involve major financial institutions and underscore the growing investor appetite for clean energy assets.
The financing is split into two partnerships: , while M&T Bank and First Citizens Bank will jointly provide financing for the energy storage component. This dual-tranche structure highlights the increasing sophistication of financing for hybrid renewable projects that combine power generation with battery storage.
The Roadrunner project, located near Tucson, is a cornerstone of Enlight's U.S. portfolio. , making it a critical asset for providing reliable, clean power to the region. The project has already secured a 20-year power purchase agreement (PPA) with the Arizona Electric Power Cooperative (AEPCO), ensuring a long-term revenue stream.
Tax equity financing is a vital mechanism for funding large-scale renewable energy projects in the United States. It allows developers like Enlight to monetize federal tax credits, such as the Investment Tax Credit (ITC), by partnering with investors who have a larger tax liability. , accelerating the transition to a lower-carbon energy system. For investors, these deals offer attractive returns and a way to meet corporate sustainability goals.
The total cost of the Roadrunner project is estimated at $610 million, with commercial operations expected to commence by the end of 2025. Upon completion, the project is projected to generate between $51 million and $54 million in annual revenue. This new financing, following a previously announced , demonstrates strong market confidence in Enlight's execution capabilities and the long-term potential of U.S. renewable energy. The successful financing is a bullish signal for Enlight (NASDAQ: ENLT) and the broader clean energy sector.