Excelsior buys tax equity interest in 20-MWp solar park in California

US renewable energy infrastructure investor Excelsior Energy Capital said on Monday that it has acquired Class A tax equity interests in a 25-MW DC solar park in California from Santander Bank NA.

The tax equity interests were purchased through Excelsior Renewable Energy Investment Fund I, the flagship fund of the Tennessee-based infrastructure investor. Japan’s Mitsubishi HC Capital Inc and utility Shikoku Electric Power Company Inc (TYO:9507) will invest alongside the fund to own the El Centro complex.

“This transaction is a way for the Fund to deploy follow-on capital into existing investments while streamlining the capital structure,” Excelsior said, adding that the deal enables it to redeploy its capital into new renewable energy projects.

The El Centro photovoltaic (PV) park is located in the city with the same name in California’s Imperial County and has been generating power for over eight years. It operates under a long-term power purchase agreement (PPA) with an investment-grade public utility.

Excelsior has been an investor in the project since 2019 when it bought Class B cash equity interests. It also acquired plans to carry out identified performance upgrades.

Choose your newsletter by Renewables Now. Join for free!