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Quinbrook, Primergy close $1.9 billion deal for solar+storage

Alan Neuhauser
Apr 25, 2022
In this illustration, solar panels are designed to look like 100 dollar bills.
Illustration: Aïda Amer/Axios

Quinbrook Infrastructure Partners closed a $1.9 billion debt and tax equity financing deal with Primergy Solar for a solar-plus-storage project in Nevada.

Why it matters: The two companies say the deal represents the "largest single-asset tax equity solar tax financing" in the U.S., for what they're also calling the "largest single project of its kind."

The details: The so-called "Gemini Project" in Clark County will consist of 690 MWac/966 MWdc solar PV and 380 MW/1,416 MWh battery storage.

  • The debt financing consists of $1.3 billion in credit facilities and $532 million in tax equity commitments.
  • The tax equity commitments were made by Truist Bank and Bank of America.
  • The credit facilities include construction facilities led by, KeyBanc Capital Markets, Inc.; MUFG Bank Ltd.; Bank of America, N.A.; and Norddeutsche Landesbank Girozentrale, New York Branch.
  • Quinbrook and Primergy arranged a $95 million mezzanine debt facility from Voya Investment Management.

The big picture: The mega-deal comes amid a near-frenzy from investors who are scouring the markets for solar projects to invest in.

  • Solar is seen as a mature sector that offers steady returns, especially when they involve established developers or development platforms. That's attracting backing from mainstream funders beyond the typical renewable-energy financiers.
  • Then again, founders and funders alike are warily watching for a potential expansion of solar tariffs, plus ongoing disruptions to supply chains.

What's next: Gemini is set to go online in late 2023, providing energy under a 25-year purchase agreement to NV Energy.

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