Greenbacker Renewable Energy Company LLC, a publicly registered, non-traded limited liability company, has purchased Midway III, a yet-to-be constructed 26-megawatt solar project located in Imperial County, California, from Solar Frontier Americas Holdings LLC.
Construction for the project is planned for January 2018 and it is expected to be operational by October 2018. Greenbacker is currently in negotiations with a financial institution to provide a construction loan and term loan facility, as well as a tax equity financing arrangement with a U.S. based financial institution.
After considering the tax equity investment and expected term loan, the net investment by Greenbacker is expected to be approximately $9 million. Once operational, Midway III will sell all of the power generated to a California utility through a 20-year fixed-price power purchase agreement.
“Working with Solar Frontier to construct a large scale solar project in California, as well as two large financial institutions to finance the transaction, is a great investment opportunity for Greenbacker,” said Greenbacker CEO Charles Wheeler. “Upon completion in the third quarter of 2018, we see Midway III as another quality asset producing stable and predictable cash flows to the benefit of our investors.”
In other Greenbacker news, the company recently purchased a wind farm located in Chittenden and Franklin Counties, Vermont for approximately $25.1 million.
Greenbacker Renewable Energy Company owns and operates a diversified portfolio of income-producing renewable energy power plants, energy efficiency projects and other sustainable investments.