U.S.-based solar energy company Nexamp has secured $680 million in funding, including $440 million of debt financing and a $240 million equity investment led by Generate Capital.

Nexamp provides clean energy access to approximately 40,000 customers across 10 states in the United States. The funding raised will be utilized to expand its presence in new markets. It will also use the funding to scale its team to develop additional retail solutions.

Nexamp develops, designs, builds, and operates distributed solar plus storage projects. It currently has around 1 GW of operating and under-construction solar and storage projects.

Zaid Ashai, Chief Executive Officer of Nexamp, said, “Consumers want more options for reducing their environmental footprints and want more control over their costs. This funding shows confidence in our team and vision, and we are committed to providing solutions to address surging clean energy demand. With the momentum in community solar, we have built a foundation for numerous additional opportunities to expand our consumers’ access to clean energy and sustainable solutions.”

As per the U.S. Department of Energy, individuals can buy or lease a portion of the solar panels in the array in solar community projects. They receive an electric bill credit for electricity generated by their share of the community solar system.

The company said Marathon Capital, an independent investment bank, facilitated the transaction.

Nexamp recently signed an agreement with Walmart for the subscription of Nexamp’s 23 New York community solar farms.

Scott Jacobs, Co-founder and Chief Executive of Generate Capital, said, “We are thrilled to be partnering with Nexamp on this next phase of growth to reach our shared goals of delivering affordable, flexible decarbonization solutions to the market.”

In March 2021, Nexamp secured a $440 million senior credit facility for its 380 MW of solar and storage portfolio spread across five states and includes nearly 100 community solar projects equipped with 120 MWh of storage capacity.

According to Mercom’s 1H and Q2 2021 Solar Funding and M&A Report, in 1H 2021, venture capital funding was 680% higher, with $1.6 billion raised in 26 deals compared to the $210 million that went into 14 deals in the first half of 2020. A total of 85 VC investors participated in solar funding in 1H 2021.