SB Energy Global, a U.S.-based integrated renewable energy platform, has secured $2.4 billion to support the development of renewable energy projects focusing on the domestic content utilization provision under the Inflation Reduction Act.

The company will utilize part of the funds to develop a 1.3 GW portfolio of four utility-scale solar power projects.

Out of the total funding, $800 million was raised in tax equity in a partnership with J.P. Morgan Bank of America, Morgan Stanley Renewables Inc., and Truist Bank for the Orion I, Eiffel, Orion II, and Orion III projects, respectively.

Other project investors helped raise term debt ($450 million) and construction debt ($1.2 billion).

Mitsubishi UFJ Financial Group was the lead lender on the Eiffel and Orion II projects, while Mizuho Americas was the lead lender on Orion I and III.

Other financial institutions include ING Group, Sumitomo Mitsui Banking Corporation, Fifth Third Bank, and Société Générale.

The company stated that three of its utility-scale projects finalized their funding using the ‘domestic content adder’ provision under the Inflation Reduction Act, designed to strengthen the U.S. manufacturing sector.

In order to qualify for the provision, SB Energy will deploy First Solar’s 1.1 million high-domestic content solar modules manufactured in Ohio. Nextracker will supply trackers with recently expanded component providers in Pennsylvania, Nevada, and Tennessee. The steel structures for the projects will use domestically sourced steel from Texas and Georgia.

SB Energy aims to utilize the extension of tax credits and new approaches to tax equity, such as transferability under the IRA.

Rich Hossfeld, S.B. Energy Co-CEO, said, “The IRA’s domestic content and energy community incentives were designed to expand America’s manufacturing base and create good-paying jobs in communities that need them. We are thrilled to be the first company to reach financial close on projects that utilize these adders with our partners, J.P. Morgan Chase, Bank of America, Morgan Stanley Renewables Inc., and Truist Bank. S.B. Energy commends our tax equity partners’ industry leadership in clean energy deployment and supporting American workers.”

Last November, Google committed to purchase approximately 75% (942W) of clean energy from S.B. Energy Global; the clean energy is produced in the company’s four Texas-based upcoming solar projects with a capacity of 1.2 GW.

According to Mercom Capital’s 9M and Q3 2023 Solar Funding and M&A Report, the total corporate funding in the solar sector, including venture capital investments, public market funding, and debt financing during the first nine months of 2023, reached $28.9 billion, a 55% year-over-year jump.