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Recurrent Energy, a subsidiary of Canadian Solar, has entered into a $103 million tax credit facilitation agreement with Bank of America for its North Fork Solar Project in Oklahoma. This agreement marks Recurrent Energy’s first production tax credit (PTC) transaction and its inaugural tax credit transfer transaction.
By transferring tax credits to Bank of America, Recurrent Energy aims to access funding more efficiently, leveraging the IRS’s recent final guidance on the transfer of clean energy tax credits. This provision, part of the Inflation Reduction Act and the Creating Helpful Incentives to Produce Semiconductors (CHIPS) Act, allows tax credit owners to sell their credits to other entities.
The Oklahoma Municipal Power Authority (OMPA), which supplies 42 municipally owned electric systems in Oklahoma, will purchase 100% of the energy produced by North Fork Solar under a 15-year agreement. This project is the first solar venture in OMPA’s energy portfolio. Recurrent Energy will retain ownership and operational responsibilities for the long term.
“This addition will further diversify our energy sources and provide our member cities with more energy options to offer their customers,” said David Osburn, OMPA general manager. “We look forward to maintaining a long-term relationship with Recurrent Energy.”
The North Fork Solar project, with a capacity of 120 MWac, spans 1,012 acres in Kiowa County, Oklahoma, and will supply enough electricity to power approximately 35,000 homes. This project significantly boosts Oklahoma’s solar capacity, which stood at 189 MW in Q1 2024, ranking the state 46th in installed capacity.
Construction of North Fork Solar, carried out by Blattner, commenced in August 2023 and was completed in June 2024, employing about 250 people at its peak and creating three permanent jobs for ongoing operations. The project employed methods to minimize soil disruption, preserving and redistributing topsoil to promote rapid ground cover growth.
During development and construction, Recurrent Energy supported local initiatives, including the Snyder 4-H and FFA, Snyder Prom, and Cyclone Educational Foundation. Now operational, the project will contribute approximately $26 million to community services.
Recurrent Energy began developing North Fork Solar in 2018. NordLB and Rabobank provided project financing, while CRC-IB and Latham & Watkins advised on the tax credit transfer transaction. |
