Longroad Energy has reached financial close for the Sun Pond solar project in Maricopa County, Arizona. Part of the Longroad Sun Streams Complex, the project includes a 111 MWdc solar array and an 85 MWac / 340 MWh battery energy storage system, and is expected to begin commercial operations by mid-2026.
Sun Pond Solar Project to Power 35,000 Homes
Output from the Sun Pond solar project will be delivered under long-term Power Purchase Agreements (PPAs) with the City of San Jose, California, and Ava Community Energy. The project is expected to produce enough electricity to power around 35,000 average American households.
Paul Gaynor, CEO of Longroad Energy, said: “The project exemplifies our commitment to delivering meaningful benefits to energy buyers and communities. We are providing customers with clean, affordable renewable energy to support grid reliability, while contributing to the local economy through lease and tax payments totaling $30 million for public schools and local jurisdictions. This project also supports family-sustaining jobs.”
Solar Project Advances Longroad-First Solar Partnership
The Sun Pond project continues a long-standing partnership between Longroad and Arizona-based solar manufacturer First Solar. This marks the fifth Arizona solar project financed by Longroad in the past four years using First Solar’s uniquely American photovoltaic solar technology.
“We are thrilled that our relationship with Longroad continues to grow in strength and that our modules will not simply power Sun Pond, but the communities it will serve. As America’s solar company, we are proud of our technology’s role in delivering cost-competitive electricity to support our nation’s economic growth and energy security.” said Georges Antoun, Chief Commercial Officer, First Solar.
U.S. Bancorp Impact Finance led the debt financing for the project, joined by Commerzbank AG and CIBC. U.S. Bancorp Impact Finance is also the project’s tax equity investor and served as Coordinating Lead Arranger, Administrative Agent, Collateral Agent, and Depositary. CIBC acted as Joint Lead Arranger and Green Loan Coordinator.
“U.S. Bancorp Impact Finance is dedicated to creating a sustainable future and we are thrilled to finance Sun Pond and continue expanding access to renewable energy in Arizona. Our team’s ability to offer comprehensive financing solutions such as tax equity financing and project finance debt and demonstrates U.S. Bank’s commitment to meeting the needs of our clients like Longroad. Sun Pond is one of several Longroad projects we’ve financed, showcasing our team’s collaborative approach to delivering tailored solutions,” said Darren Van’t Hof, Managing Director of Environmental Finance at U.S. Bancorp Impact Finance.
McCarthy Leads EPC for the Project, Creating 200+ Jobs
McCarthy Building Companies (McCarthy) is the engineering, procurement, and construction (EPC) contractor for the Sun Pond solar project. Construction is expected to create over 200 jobs. McCarthy will employ registered apprentices and ensure all workers are paid prevailing wages as mandated by the Inflation Reduction Act (IRA).
“Building solar projects allows us to further develop Arizona’s solar workforce while also investing in our nation’s diverse energy infrastructure. We are thrilled to be part of another major solar energy and storage project with Longroad Energy in Arizona and for the economic opportunities it provides our community.” said Chris Fletcher, McCarthy Vice President of Operations.
Sun Pond will prevent over 145,000 metric tons of CO2 emissions annually. Throughout its lifespan, the project is also expected to generate more than $30 million in revenue for Arizona schools and communities through its long-term lease with the Arizona State Land Department and tax payments. Longroad thanked the staff and officials from Maricopa County and the Arizona State Land Department for their collaboration throughout the project’s development and construction.