Recurrent Energy Signs $103 Million Tax Credit Transfer Agreement with Bank of America for North Fork Solar Project

Recurrent Energy, a subsidiary of Canadian Solar Inc., announced that it has signed a $103 million tax credit facilitation agreement with Bank of America for its North Fork Solar project (“North Fork Solar”). The 160 MW solar project, located southwest of Oklahoma City, is now operational.

To celebrate the commencement of operations, Recurrent Energy and the Oklahoma Municipal Power Authority (“OMPA”) held a ribbon cutting ceremony on June 26, 2024. OMPA, which operates 42 municipally-owned electric systems in Oklahoma, will purchase 100% of the power produced by North Fork Solar under a 15-year agreement. Recurrent Energy will continue to own and operate the project in the long term.

This tax equity agreement represents Recurrent Energy’s first tax credit transaction (PTC) and first tax credit transfer transaction. By transferring the tax credits to Bank of America, Recurrent Energy can access financing more quickly and efficiently. At its peak, North Fork Solar employed approximately 500 construction workers. Blattner provided engineering, procurement, and construction services, retaining several local companies as subcontractors.

David Osburn, CEO of OMPA, said: “OMPA is excited to add the first large-scale solar project to our resource mix. This addition will further diversify our energy sources and provide our member cities with more energy options to offer their customers. We look forward to maintaining a long-term relationship with Recurrent Energy.”

Karen Fang, Global Head of Sustainable Finance at Bank of America, added: “This transaction demonstrates our ability to support clients by helping build a new market for transferable tax credits. As part of our $1.5 trillion commitment to deploy and mobilize sustainable finance capital by 2030, we are focused on accelerating and scaling renewable energy projects like North Folk Solar.”

Ismael Guerrero, CEO of Recurrent Energy, noted, “North Fork Solar is now supporting Oklahoma’s energy development and resiliency. We thank our many partners who supported this project from development through operation. We are pleased to partner with our partners at Bank of America to complete one of the first tax transfer transactions in the industry.”

Related