Wedoany.com Report-Jun 2, Arevon Energy, a U.S.-based energy developer and operator, has obtained a $98 million tax equity commitment from Fifth Third Bank to fund the Ratts 1 and Heirloom solar projects in Pike County, Indiana. These projects, currently under construction, will add a combined 265 megawatts of renewable energy capacity to Indiana, supporting Arevon’s expansion in the Midwest and Midcontinent Independent System Operator (MISO) regions.
The projects are part of Arevon’s expansion in the Midwest/Midcontinent Independent System Operator (MISO) territories.
The 192-megawatt Ratts 1 Solar project has secured a long-term power purchase agreement with the Indiana Municipal Power Agency, while the 73-megawatt Heirloom Solar project will supply energy to Meta. Both projects are expected to begin operations in the second half of 2025. The financing, facilitated through the Inflation Reduction Act’s tax credit transfer provision, provides Arevon with greater flexibility in its capital structure.
Jon Stark, Head of Renewables at Fifth Third Bank, stated: “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 US renewables pipeline.” The partnership underscores Fifth Third Bank’s commitment to advancing renewable energy development in the U.S.
The Ratts 1 and Heirloom projects represent a nearly $400 million investment in Pike County, expected to generate over $86 million in economic benefits for local governments, supporting public services and infrastructure. Construction has created 200 full-time jobs and stimulated local businesses, contributing to regional economic growth. Denise Tait, Arevon’s chief investment officer, commented: “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.”
Advisory and legal firms Paragon Energy Capital, Latham & Watkins, and Norton Rose Fulbright were instrumental in securing the tax equity commitment. In September 2024, Arevon finalized a separate $299 million financing package for these projects, marking its first uncommitted tax equity and tax credit transfer bridge loan transaction. Arevon continues to expand its Midwest portfolio, with ongoing projects like the Posey and Gibson solar facilities in Indiana and the 430-megawatt Kelso Solar Project in Missouri. The company has secured over $3.8 billion in financing for its solar and energy storage developments across the U.S.
