Sol Systems Clinches $634 Million Texas Solar Duo

• Sol Systems secures $634M to build 324 MW across PJM and ERCOT, powering up to 87,000 homes with Blossom and Nightfall solar.

Sol Systems closed financing on two utility-scale solar projects totaling 324 MW—144-MW Blossom Solar and 180-MW Nightfall Solar—representing $634 million. A lending consortium of BBVA, ING Capital, Intesa Sanpaolo, NAB, Natixis CIB, and NatWest provided a construction warehouse facility; tax equity came from Raymond James Renewable Energy Investments.

Blossom, Sol Systems’ first PJM utility-scale project, will be built in Morrow County with $300 million in funding, spanning 1,700 acres and producing about 279,600 MWh annually—power for over 29,000 homes. Nightfall, in Texas’ Uvalde County within ERCOT, is slated for commissioning this year, with output equivalent to nearly 58,000 households; SOLV Energy is the EPC.

What PPAs, hedges, and IRA incentives underpin Blossom and Nightfall’s revenues?

Blossom Solar (PJM – Ohio)
- Contract structure: Long-term PJM-settled virtual PPA (contract for differences) for a majority of output and RECs, hub-settled to reduce nodal risk; remaining slice merchant to capture upside.
- Price risk management: Hub-to-node basis hedges and seasonal shaping to mitigate profile and congestion risk; forward REC sales under Ohio Tier I REC contracts.
- Capacity/ancillary: Limited PJM capacity revenues via UCAP accreditation; minimal ancillary services revenue.
- IRA/tax: 30% Investment Tax Credit (ITC) with prevailing wage/apprenticeship; potential 10% Domestic Content bonus if equipment thresholds are met; potential 10% Energy Community bonus if eligible site criteria are satisfied; 5-year MACRS + bonus depreciation; monetized via partnership-flip tax equity (with ability to transfer residual credits if applicable).

Nightfall Solar (ERCOT – Texas)
- Contract structure: ERCOT node-settled hedge—either fixed-shape PPA or proxy revenue swap—to lock in a fixed price on as-generated volumes; partial merchant exposure for peak pricing events.
- Price risk management: Congestion and shape risk addressed through structured hedge tenor and volumetric caps; Texas REC strip sales to corporate buyers.
- Ancillary: Modest exposure to ancillary services; no capacity market revenue in ERCOT.
- IRA/tax: 30% ITC with prevailing wage/apprenticeship or election of PTC if economics favor high net capacity factor; potential 10% Domestic Content bonus if met; 5-year MACRS + bonus depreciation; monetized through tax equity with optional credit transfer for any unsheltered amounts.