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Arevon Energy, Inc., a leading U.S.-based energy developer, owner, and operator, has secured a $98 million tax equity commitment from Fifth Third Bank to support the development of its Ratts 1 and Heirloom Solar Projects. Currently under construction in Pike County, Indiana, these two projects will contribute a combined 265 megawatts of solar energy to the region and significantly expand Arevon’s presence in the Midwest, specifically within the Midcontinent Independent System Operator (MISO) territories. This financing adds to Arevon’s growing momentum, with the company having secured more than $3.8 billion in funding over the past 18 months for solar and energy storage initiatives across the country. Together, the Ratts 1 and Heirloom projects represent an investment of nearly $400 million. Over their operational lifespans, they are expected to provide over $86 million in financial support to local governments, aiding schools, infrastructure development, and other public services. Approximately 200 full-time equivalent jobs have been created during the construction phase, also leading to increased activity in local businesses such as hotels, restaurants, and retail stores. The Ratts 1 project, which will deliver 192 megawatts of solar energy, has a long-term power purchase agreement with the Indiana Municipal Power Agency, while the 73-megawatt Heirloom project will supply power to Meta. Both projects are expected to be fully operational later in 2025. Denise Tait, Chief Investment Officer at Arevon, mentioned, “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. 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.” Jon Stark, Head of Renewables at Fifth Third Bank, stated, “Fifth Third Bank was pleased to partner with Arevon on the tax equity financing commitment for the Ratts 1 and Heirloom Solar Projects. 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.” This $98 million commitment marks the first tax equity partnership between Arevon and Fifth Third Bank and benefits from the capital structure flexibility provided under the Inflation Reduction Act, particularly through the tax credit transfer provisions. The financial structuring was supported by Paragon Energy Capital as Sponsor Financial Advisor, Latham & Watkins as Sponsor Counsel, and Norton Rose Fulbright as Tax Equity Counsel. In September 2024, Arevon announced a separate financial close of $299 million for the same two projects, which was notable as the company’s first transaction involving uncommitted tax equity and tax credit transfer bridge loans. Arevon continues to expand its clean energy footprint in the Midwest. The company recently began construction on the Posey Solar and Gibson Solar Projects in Indiana and has made progress on the 430-megawatt Kelso Solar Project in Missouri, including contributions to local community programs. In Illinois, the company’s 124-megawatt Big Muddy Solar Project has opened a local office and extended support to various local organizations, with construction expected to begin later this year. |
