Community solar and battery storage developer, owner, and operator, Dimension Energy, has announced the closing of a US$150 million corporate credit facility with Deutsche Bank in an innovative deal featuring letter of credit (L/C) support for US renewable projects.

In this financing, a pre-notice to proceed (NTP) facility will provide revolving credit in the form of cash and L/Cs to further the deployment of Dimension's more than 2 gigawatt community solar pipeline.

Financings and L/Cs

Pre-NTP financing ensures that contractors or suppliers have access to the necessary funds to start preparatory work on a project.

L/Cs can play an important role in this process by providing financial guarantees that reduce risk and ensure timely payments during the early stages of the project.

Enabling solar development

Community solar projects provide power to the 45 per cent of individuals who are unable to put solar on their homes or apartments.

Dimension's projects tap into existing infrastructure, generate power where it is needed, and provide low-cost clean electricity to surrounding communities.

Dimension's record

This latest announcement comes on the heels of Dimension's July announcement that the company will invest US$3 billion over the next five years, with over 500 megawatts (MW) of operating community solar assets planned by the end of 2025.

Dimension's planned operating portfolio represents US$1.1 billion of invested capital across the US, with over 200MW currently under construction in eight US states.

Balance sheet lending

L/Cs are an offering in Deutsche Bank's US-based balance sheet lending platform, the Deutsche Bank Private Credit and Infrastructure business (PCI).

It provides financing to bank clients including corporates, projects and alternative investment managers using bank capital to underwrite loan facilities including corporate, bridge, term, construction and development loans, as well as L/Cs, with a focus across digital, power and conventional infrastructure, venture debt and fund finance.

This article represents the views of the author and not necessarily those of the ICC or Coastline Solutions.