Renewable energy investor Generate Capital and KeyState Renewables have closed their third joint fund to develop, build and manage 11 community solar projects in rural New York.
The fund, Generate NY Community Solar VI, will create 53.5 MW of new solar direct-current power capacity. The closed fund consists of a $64 million investment from KeyState.
Three of the 11 projects are in areas where development of renewable energy is incentivized to address unemployment and economic reliance on extraction or production of fossil fuels.
“Accelerating the sustainable infrastructure transition requires investors to find creative ways to finance and deliver clean energy projects. We are thrilled to continue our work with KeyState on our tax equity partnership for community solar and provide the latest proof of the growing demand for renewable energy investment,” said Peggy Flannery, Managing Director at Generate Capital, in a statement.
The projects, financed through KeyState’s SOLCAP solar tax credit fund platform, are anticipated to produce a combined 76.48 million kWh of solar energy in their first year to power up to 10,544 homes and reduce greenhouse emissions by 53,429 metric tons of CO2.
Community solar is attracting investment from a wide array of developers and commercial and industrial customers. Companies which have invested and connected into community solar include Microsoft, Starbucks, Nuveen, Wendy's, Scale Microgrids and Honeywell, among others.
In early 2024, Generate and KeyState signed a fourth fund agreement to continue their community solar investment partnership and bring additional renewable energy assets online. KeyState has invested about $150 million across three funds co-managed with Generate.
The investment marks Generate Capital’s sixth fund with New York community solar projects and builds on Generate’s infrastructure-as-a-service model, which delivers financing, construction, and management of clean energy infrastructure.
Generate’s infrastructure-as-a-service model is funded through different financing models including new and longstanding tax equity provisions.
Community solar projects are envisioned as a less costly price point for potential renewable customers. They involve a subscription by customers, providing an alternative to expensive residential solar installment and also a more direct, localized generation resource than utility-scale projects.
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Generate Capital invests in a broad array of energy transition sectors, from agriculture to e-mobility to energy storage, hydrogen infrastructure and renewables. The group has raised more than $10 billion for investments since its inception in 2014.
Community solar deployment has accelerated in the U.S. this decade. Close to 7.5 GW of community solar projects are in operation nationwide, according to the U.S. Department of Energy.
Twenty-two states and Washington D.C. have enacted legislation to enable community solar development.
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