Energix Renewables, a U.S.-headquartered independent power producer, has closed two project financing transactions totaling $520 million with Santander Corporate & Investment Banking (Santander CIB) and Morgan Stanley Renewables to develop six utility-scale solar projects in the U.S.

The financing deals involve a consortium led by Santander CIB, providing a construction and term loan facility of $260 million, while Morgan Stanley acts as a tax equity investor with a commitment of $260 million.

The funds raised through these transactions will be used to develop six utility-scale solar projects in Virginia and Pennsylvania.

The projects cumulatively are expected to generate a combined capacity of 416 MW (DC), providing domestically produced power to local grids.

The company said the significant boost to the local economies would not only increase tax revenues but also create hundreds of well-paying construction jobs.

One project within the portfolio is the Adams Solar project, which is projected to meet 22% of the City of Philadelphia’s municipal electricity demand.

With the investment, Energix is projected to have 640 MW (DC) of operational projects by the end of 2023. The company said the expansion would contribute to the company’s investment in American energy infrastructure, approaching a total of $1 billion, and also strengthen the solar workforce in the Mid-Atlantic and promote sustainable energy solutions across the region.

“Energix is delighted to further strengthen its longstanding partnership with Morgan Stanley. This continued collaboration reinforces Energix’s position as a leading independent power producer in the US market,” stated Asa (Asi) Levinger, CEO of Energix.

The recent transaction marks the third tax equity deal between Energix and Morgan Stanley.

The company has established a new partnership with Santander CIB, expanding its collaboration to the U.S. The alliance aims to leverage Santander’s extensive network and resources, allowing Energix to expand its footprint.

“Santander Corporate & Investment Banking is proud to continue supporting Energix in the development of their global renewable pipeline by expanding our existing relationship to the U.S., allowing the company to continue delivering high-quality utility-scale projects,” said Nuno Andrade, Head of Structured & Acquisition Finance in the U.S.

Energix Renewables has said it would exclusively use modules from U.S.-based solar module manufacturer First Solar to ensure the use of domestically produced materials.

According to Mercom’s Q1 2023 Solar Funding and M&A Report, total corporate funding for solar companies, including from venture capital, public market, and debt financing, amounted to $8.4 billion in 42 deals in the first quarter of 2023, up 11% year-over-year compared to $7.5 billion raised in 49 deals.