SolarBank Corporation announced on December 16, 2024, that its subsidiary secured a $25.8 million non-recourse project loan from Royal Bank of Canada. This financing is designated for the construction, operation, and maintenance of two 4.99 MW Battery Energy Storage System (BESS) projects in Ontario, known as SFF 06 and 903.
These projects were acquired as part of the $45 million acquisition of Solar Flow-Through Funds Ltd. in July 2024. In July 2023, the projects were awarded 22-year contracts by the Independent Electricity System Operator (IESO) under the Expedited Long-Term RFP, featuring a fixed contract capacity payment of $1,221 per MW per business day, which is significantly above the weighted average price for similar projects.
The projects are eligible for the Clean Technology Investment Tax Credit, offering up to 30% reimbursement of eligible capital costs, which is expected to enhance economic returns. The loan includes a construction facility, a term loan conversion, and an ITC bridge facility. Construction on the SFF 06 project is expected to commence in the current quarter, with the 903 project following in the second calendar quarter of 2025.
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