Renewable power company BrightNight announced today that it has closed a $260 million tax-equity financing, provided by J.P. Morgan, through one of its affiliates, and Capital One, for its 300 MW Box Canyon solar project in Arizona.

Tax equity financing is emerging as a key source of funding for new clean energy and decarbonization projects in the U.S., since the passage of the Inflation Reduction Act.  Signed into law by President Biden in 2022, the IRA allocated nearly $370 billion through a series of tax credits, loans, grants and subsidies to areas including renewable energy and industrial decarbonization solutions, and for the first time made these tax credits transferable, creating a new mechanism for funding energy transition projects.

Founded in 2019 as a renewables-focused independent power producer (IPP), Florida-based BrightNight develops, constructs and operates renewable power projects. The company works with utility, commercial and industrial customers to provide large-scale hybrid renewable power projects, aimed at helping manage the intermittent nature of renewable energy. The company also utilizes proprietary AI-based software, PowerAlpha, to optimize the design, resource mix, and operational strategy to optimize projects for customers.

Jointly owned by BrightNight and Cordelio Power, the Pinal County, Arizona-based Box Canyon project will serve the Southwest Public Power Agency (SPPA), which provides power to 25 different smaller electric Co-Ops and utilities throughout the state. The 300 MW solar project is anticipated to become operational in the first half of 2025, and with over 900,000 MWh of projected annual production, marks the largest renewable energy procurement in the history of the SPPA.

BrightNight and Cordelio previously closed the project’s construction financing in May 2024 with Zions Bank, CIBC, RBC, NBC, and SMTB.

The financing also follows the announcement by BrightNight of the closing of a $440 million strategic equity investment from Goldman Sachs Alternatives, aimed at supporting the company’s independent power producer (IPP) business model and the buildout of its utility-scale portfolio across the U.S.

BrightNight CEO Martin Hermann said:

“We are delighted to partner with J.P. Morgan and Capital One to help the residents of Arizona meet their power needs and achieve their sustainability goals. With over 900,000 MWh of projected annual production, the Box Canyon Solar Project is a model of utility-scale renewable power. It will provide reliable, affordable clean energy to local communities, while creating long-term economic benefits, well-paying American jobs, and strengthening the region’s energy security. We’re proud that this project will support Arizona’s clean energy transition and deliver value for decades to come.”