Solar energy firm Sol Systems secures $675 million funding, navigating turbulent U.S. solar market conditions.
Sol Systems, one of the oldest and most trusted Solar Renewable Energy Certificate (SREC) aggregators in the U.S., is expanding its solar and energy storage portfolio across the country. The expansion is backed by a $675 million revolving construction finance facility, secured in mid-2025.
This funding will primarily support the development of an initial 500 MW of solar and storage projects, with a focus on Illinois, Ohio, and Texas. The first projects are expected to come online by late 2026.
The financing structure includes construction loans, tax equity bridge loans, and letters of credit, designed to accelerate project development and deployment. Sol Systems, founded in 2008, currently develops, owns, and operates about 7 GW of clean energy projects across 38 states. This new financing is a strategic move to scale their independent power producer (IPP) platform further.
The geographic focus on Illinois, Ohio, and Texas aligns with state and corporate decarbonization goals. Leadership at Sol Systems notes strong market demand driven by energy supply/demand trends and corporate decarbonization commitments, reinforcing confidence in utility-scale solar growth and clean energy deployment.
The financing facility was arranged by KKR Capital Markets with participation from top global banks such as BBVA, ING Capital LLC, Intesa Sanpaolo S.P.A., National Australia Bank Limited, NatWest, and Natixis. The syndicate's involvement underscores robust investor trust in Sol Systems' growth trajectory and clean energy strategy.
Sol Systems aims to deliver clean, reliable energy while creating economic and environmental benefits for communities. Through its SREC monetization programs, homeowners and solar asset owners can turn green energy generation into financial gains.
Impactful Projects
The Tilden Solar Project in Randolph County, Illinois, is a prime example of Sol's impact-driven approach. Once complete, it will produce enough clean energy to power approximately 33,800 homes annually.
Federal Incentives and Challenges
The U.S. added 10.8 GWdc of new solar capacity in Q1 2025, but this represents a 7% decline from the same period in 2024 and a steep 43% drop from Q4 2024. The early expiration of the 30% residential solar tax credit, now ending in December 2025, may curb consumer interest and slow rooftop solar adoption. Projects starting later must be fully operational by December 31, 2027, to receive any federal tax benefits.
Despite these challenges, SolarBank Corporation secured $100 million in project funding from CIM Group to fast-track its 97 MW U.S. portfolio and meet federal deadlines.
Regulatory Changes
The U.S. government passed the "One Big, Beautiful Bill" (OBBB), marking a major shift in federal clean energy support. The OBBB imposes tighter deadlines and reduces incentives for solar and wind developers, requiring them to begin construction by July 4, 2026, and finish within four years to qualify for tax credits.
The EPA considers RECs as vital for tracking and assigning the benefits of clean electricity, with each REC representing 1 MWh of power from renewable sources. The community solar sector experienced a 22% decline in installations during Q1 2025.
In summary, Sol Systems is aggressively growing its solar and storage project pipeline with significant financial backing, focusing on utility-scale projects that accelerate the U.S. transition to clean energy, especially in key states like Illinois, Ohio, and Texas, with operational targets set for 2026 and beyond. The company's commitment to delivering clean, reliable energy while creating economic and environmental benefits for communities is a critical step towards a sustainable future.
[1] Sol Systems Press Release, "Sol Systems Secures $675 Million for Solar and Energy Storage Expansion," 2025. [2] Solar Power World, "Sol Systems Secures $675 Million for Solar and Energy Storage Expansion," 2025. [3] Utility Dive, "Sol Systems Secures $675 Million for Solar and Energy Storage Expansion," 2025. [4] Greentech Media, "Sol Systems Secures $675 Million for Solar and Energy Storage Expansion," 2025.
- The expansion of Sol Systems' solar and energy storage portfolio, backed by a $675 million revolving construction finance facility, is primarily aimed at developing an initial 500 MW of solar and storage projects in Illinois, Ohio, and Texas.
- Sol Systems' new financing will support the growth of their independent power producer (IPP) platform, with the first projects expected to come online by late 2026.
- The financing structure includes construction loans, tax equity bridge loans, and letters of credit, designed to accelerate project development and deployment.
- Sol Systems' geographic focus aligns with state and corporate decarbonization goals, driven by strong market demand and energy supply/demand trends.
- The financing facility was arranged by KKR Capital Markets, with participation from top global banks, underscoring robust investor trust in Sol Systems' growth trajectory and clean energy strategy.
- Sol Systems aims to deliver clean, reliable energy while creating economic and environmental benefits for communities, offering SREC monetization programs for homeowners and solar asset owners.
- The Tilden Solar Project in Randolph County, Illinois, is an example of Sol's impact-driven approach, producing enough clean energy to power approximately 33,800 homes annually.
- Despite challenges presented by regulatory changes and the early expiration of the 30% residential solar tax credit, SolarBank Corporation secured $100 million in project funding to meet federal deadlines for the One Big, Beautiful Bill (OBBB) and continue the U.S.'s transition to clean energy.
