Scale Microgrids Secures $225 Million in Funding to Advance Distributed Energy Projects Across the U.S.

Scale Microgrids, a leading distributed energy platform, has secured significant funding to advance its mission of providing cleaner, cheaper, and more resilient power solutions across the United States. The company recently closed a first-of-its-kind non-recourse project finance debt facility worth $225 million. This funding will be used to construct and operate a diverse portfolio of distributed energy projects, including microgrids, combined heat and power (CHP) systems, community solar, rooftop solar, battery energy storage systems, and microgrid electric vehicle infrastructure projects.

These projects will be implemented in various markets, including California, Oregon, the District of Columbia, Pennsylvania, Delaware, Colorado, North Carolina, New Jersey, and New York. The initiative aims to provide a wide range of businesses, schools, municipalities, and rate-paying consumers with access to more reliable and sustainable energy solutions.

The debt facility was made possible through the collaboration of KeyBanc Capital Markets and City National Bank, which acted as joint lead arrangers. Energetic Insurance provided a credit insurance policy, enabling access to the bank lending market. Other key partners included Black & Veatch as an independent engineer to the lenders, Wood Mackenzie for market forecasts, Allen & Overy for legal counsel, and Foley Lardner as lender counsel.

Ryan Goodman, co-founder and Chief Executive Officer at Scale Microgrids, emphasized the significance of this funding, stating that it demonstrates the changing landscape of renewable energy. Microgrids, by incorporating various technologies, are becoming increasingly important in the transition to distributed energy. Goodman highlighted the company’s vision of bringing microgrids and distributed energy resources (DERs) to the masses, making energy more accessible and sustainable.

Julian Torres, Chief Financial Officer at Scale Microgrids, expressed gratitude to the partners involved in the deal, noting that it increases the company’s access to debt capital markets, a crucial component of its strategy to deliver microgrids and distributed energy projects at favorable rates.

Andy Redinger, head of KeyBanc Capital Markets’ Utilities, Power & Renewable Energy Group, underscored the bank’s commitment to the distributed energy transition and its excitement to partner with Scale Microgrids. Craig Robb, Managing Director, Power Project Finance at City National Bank, emphasized the bank’s leadership in financing renewable power projects and its pride in working with Scale Microgrids to scale new energy projects.

James Bowen, Chief Executive Officer at Energetic Insurance, highlighted the importance of microgrids in the next wave of the energy transition movement and praised Scale Microgrids for its innovative leadership and customer-first approach.

This substantial funding will enhance the reliability and equitability of the nation’s electricity system by providing the infrastructure for a more decarbonized and distributed energy future. Scale Microgrids’ vertically integrated platform, with its core focus on designing, building, financing, owning, and operating cutting-edge distributed energy assets, is well-positioned to capitalize on the growing demand for cleaner, cheaper, and more reliable power.

In addition to this significant debt facility, Scale Microgrids has also partnered with private investment firm Captona to close a funding round for a series of community solar and microgrid assets in New York and California. This partnership leverages the new opportunities to monetize investment tax credits under Section 6418, which was added to the Internal Revenue Code as part of the Inflation Reduction Act (IRA) of 2022. The collaboration with Captona underscores Scale Microgrids’ ability to unlock value in its portfolio and take full advantage of emerging financial opportunities in the renewable energy sector.

Overall, Scale Microgrids’ recent funding achievements demonstrate its commitment to advancing the distributed energy transition and its capacity to secure significant financial backing to support its ambitious projects. The company’s innovative approach and strategic partnerships are poised to make a significant impact on the nation’s energy landscape.