Convergent Secures Financing for Solar and Storage Expansion

• Convergent Energy secures $150 million from MUFG to supercharge solar and energy storage projects, advancing sustainable solutions across North America with impressive growth plans.

Convergent Energy and Power has secured financing from Mitsubishi UFJ Financial Group (MUFG) to accelerate the development of its solar and energy storage projects across North America. The financing includes a construction-to-term loan, a tax equity bridge loan, and a letter of credit facility, with an initial funding amount of $150 million aimed at supporting near-term distributed-scale projects.

Currently, Convergent operates or is developing over 800 MW/1,000 MWh of energy storage and solar-plus-storage systems and has committed more than $1 billion to these projects. Additionally, the company recently finalized a tax equity financing agreement with East West Bank to enhance its project portfolios in New York and Maryland.

How will Convergent's new financing impact solar and energy storage development in North America?

The recent financing secured by Convergent Energy and Power from Mitsubishi UFJ Financial Group (MUFG) is poised to create significant ripple effects in the solar and energy storage landscape across North America. Below are key points on how this development may impact the sector:

• Increased Project Velocity: The infusion of $150 million in financing will enable Convergent to fast-track the construction and deployment of its distributed-scale solar and energy storage projects, potentially expediting renewable energy integration into local grids.
• Enhanced Financial Flexibility: The diverse structure of the financing—including a construction-to-term loan and tax equity bridge loan—provides Convergent with greater financial flexibility. This can enhance its ability to initiate and scale projects more effectively while optimizing capital allocation.
• Broader Market Influence: With over 800 MW/1,000 MWh of projects in development, the increased funding allows Convergent to play a pivotal role in the energy transition, influencing market trends and encouraging other developers to follow suit in expanding their investments in renewable technologies.
• Job Creation: The acceleration of solar and energy storage projects is likely to stimulate job creation across several sectors, from manufacturing and installation to maintenance and operations, contributing to local economies, particularly in the states where these projects will be developed.
• - Strengthening of Local Grids: By enabling more distributed-scale solar and energy storage systems, Convergent’s projects can bolster grid resilience and reliability, aiding in the management of demand fluctuations and enhancing energy security for communities.
• Environmental Benefits: Increased deployment of renewable energy sources will contribute to significant reductions in carbon emissions, aligning with broader environmental goals and state-level commitments to achieve net-zero emissions.
• Potential for Technological Innovation: The financial backing can facilitate research and development investments, leading to advancements in solar technologies and energy storage solutions, which could improve efficiency and lower costs in the long run.
• Tax Incentives and Public Policy Alignment: Convergent's tax equity financing agreement points to the importance of leveraging available federal and state incentives. This alignment with public policy initiatives may encourage other companies to seek similar arrangements, further energizing the sector.
• Collaborative Opportunities: With its expanded resources, Convergent may seek partnerships with other companies, utilities, and governmental bodies, fostering collaborative efforts that can weave together solar and storage solutions across different markets.
• Community Engagement: The development of distributed-scale projects can enhance community involvement by creating opportunities for local investment and ownership models, thus increasing stakeholder buy-in for renewable energy initiatives.

In summary, Convergent's new financing facilitates growth not only for the company but also for the broader renewable energy ecosystem in North America, shaped by enhanced investment, technological advancements, and increased collaboration.