Recurrent Energy and Bank of America Sign Agreement to Facilitate $103 Million Tax Credit for North Fork Solar Project

Recurrent Energy, a subsidiary of Canadian Solar, has entered into a $103 million tax credit facilitation agreement with Bank of America for its North Fork Solar project in Oklahoma. This agreement marks Recurrent Energy’s first tax credit (PTC) transaction and its first tax credit transfer transaction.

By transferring the tax credits to Bank of America, Recurrent Energy aims to more efficiently access financing by leveraging the latest final guidance from the IRS on the transfer of clean energy tax credits. This provision, part of the Inflation Control and Semiconductor Manufacturing Incentives Act (CHIPS), allows tax credit owners to sell their credits to other entities.

The Oklahoma Municipal Power Authority (OMPA), which operates 42 municipally owned electric systems in Oklahoma, will purchase 100 percent of the power generated by North Fork Solar under a 15-year agreement. The project is the first solar project in OMPA’s energy portfolio. Recurrent Energy will retain ownership and operational responsibility long term.

“This addition will further diversify our energy sources and provide our member cities with more energy options to offer their customers,” said David Osburn, CEO of OMPA. “We look forward to a long-term partnership with Recurrent Energy.”

The 120 MWac North Fork Solar project covers 1,012 acres in Kiowa County, Oklahoma, and will provide enough electricity to power approximately 35,000 homes. This project significantly increases Oklahoma’s solar capacity, which was 189 MW in the first quarter of 2024, ranking the state 46th in installed capacity.

Construction of North Fork Solar, by Blattner, began in August 2023 and was completed in June 2024, employing approximately 250 people at peak and creating three permanent jobs for ongoing operations. The project uses methods to minimize soil disturbance, retaining and redistributing topsoil to promote rapid ground cover growth.

During development and construction, Recurrent Energy supported local initiatives including Snyder 4-H and FFA, Snyder Prom and the Cyclone Educational Foundation. The project currently operating will contribute approximately $26 million to community services.

Recurrent Energy broke ground on North Fork Solar in 2018. NordLB and Rabobank provided financing for the project, and CRC-IB and Latham & Watkins advised on the tax transfer transaction.

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