Arevon Energy, Inc., a leading American energy developer, owner, and operator, is pleased to announce a $98 million tax equity commitment from Fifth Third Bank for the company's Ratts 1 and Heirloom Solar Projects. These projects, which are currently under construction, will add 265 megawatts (MWdc) of new domestic energy to Pike County, Indiana, and will expand Arevon's portfolio in the Midwest/Midcontinent Independent System Operator (MISO) territories. Arevon's aggregate project financings over the last 18 months total more than $3.8 billion for new solar and energy storage projects across the U.S.
Together, the two Pike County projects represent an investment of almost $400 million and will disburse more than $86 million to local governments over their lifespans, supporting schools, infrastructure, and other public services. The projects have employed approximately 200 full-time equivalent personnel to build the facilities and have also brought about an increase in spending at local stores, hotels, and restaurants. The 192 MWdc Ratts 1 Solar and the 73 MWdc Heirloom Solar Projects are both expected to be fully operational later this year.
Arevon announced the separate $299 million financial close for the Ratts 1 and Heirloom Solar Projects in September 2024, marking its first uncommitted tax equity and tax credit transfer bridge loan transaction. This $98 million tax equity partnership is the first with Fifth Third Bank where Arevon benefits from the capital structure flexibility provided by the Inflation Reduction Act's (IRA) tax credit transfer provision.
"The complex and highly successful structure of this transaction marks another notable financial accomplishment for Arevon. This is a great example of what happens when all the right pieces come together," said Denise Tait, Chief Investment Officer at Arevon. "We were proud to work with Fifth Third Bank and our other financing partners on all we have achieved across our projects' financing packages. The Arevon team's deep expertise and experience will enable us to continue to innovate on future financial transactions."
"Fifth Third Bank was pleased to partner with Arevon on the tax equity financing commitment for the Ratts 1 and Heirloom Solar Projects," said Jon Stark, Head of Renewables at Fifth Third Bank. "Supporting premier platforms like Arevon squarely fits our future growth, and we look forward to continuing to grow our relationship with Arevon as they continue to execute on their high-quality U.S. renewables pipeline."
Paragon Energy Capital served as the Sponsor Financial Advisor, Latham & Watkins as Sponsor Counsel, and Norton Rose Fulbright as the Tax Equity Counsel for the projects' tax equity commitment closing. Ratts 1 Solar is under a long-term power purchase agreement with Indiana Municipal Power Agency, and Meta is the offtaker for Heirloom Solar.
Arevon is actively growing its portfolio in the Midwest region of the United States. Last year, the company announced the start of construction for the Posey Solar Project and the Gibson Solar Project, both located in Indiana. Arevon also shared news on the advancement of construction for the 430 MW Kelso Solar Project in Missouri, where the company has recently completed contributions to worthy initiatives and community programs in the project area. In Illinois, Arevon's 124 MW Big Muddy Solar Project opened a new local office and announced support for several deserving organizations. Construction proceedings for Big Muddy are expected to initiate later this year.
About Arevon Energy, Inc.
Arevon is a U.S. energy leader committed to powering America with affordable, reliable, and secure homegrown energy. Headquartered in Scottsdale, Arizona, and with a regional office in New York City, the company's experienced and dedicated staff develops, finances, builds, owns, and operates renewable energy projects nationwide. With a strong track record in utility-scale solar and energy storage, Arevon is a trusted partner to utilities and businesses seeking cost-effective, sustainable energy solutions. By prioritizing American manufacturing and domestic energy production, the company invests in U.S. jobs, strengthens local economies, and advances the country's energy independence.
Arevon owns and operates more than 4.5 gigawatts (GW) of solar and energy storage projects across 17 states, representing more than $9.3 billion in capital investment, and is constructing an additional 1.9 GW of new capacity. The company also partnered with local utilities to develop and build 480 megawatts of solar energy, ensuring each project was successfully integrated into their communities. Over the past 18 months, Arevon has completed more than $3.8 billion in project financings. With a 6 GW development portfolio and continued investment in new projects, Arevon is solidifying its role as a leader in powering an American energy future. For more information, visit arevonenergy.com.
