Energea U.S.-Focused Fund Supports Solar Power Project in Texas
Energea, a renewable energy investment firm and solar generation operator, will provide up to $5 million of secured convertible financing for Iron Spur Solar, a 140-megawatt DC utility-scale solar project in Snyder, Texas – Energea’s first financing for an industrial-scale solar project in the United States.
An initial $762,000 was deployed through the firm’s Solar in the USA portfolio. Construction has begun, with full operation expected in early 2029. Iron Spur has secured an exclusivity agreement with an investment-grade corporate energy user for a long-term power purchase agreement, according to Energea.
Energea’s convertible loan structure is designed to generate immediate income while maintaining a path to majority project ownership, the company said.
“Iron Spur is a strategic evolution for our Solar in the USA portfolio, adding utility-scale exposure and immediate cash generation during the traditionally non-income-producing construction phase,” said Mike Silvestrini, co-founder and managing partner at Energea. “We see excellent investment opportunities in industrial-scale solar and anticipate expanding further beyond distributed generation projects for which we are known, while maintaining Energea’s focus on immediate cash yield and strong contractual protection.”
The Iron Spur project is located in West Texas, which Energea described as one of the most established and liquid utility-scale solar markets in the United States. The ground-mounted, single-axis tracked facility is expected to generate approximately 317 GWh of electricity annually once operational, supported by a 35-year land lease and an interconnection strategy that the company said avoids costly substation upgrades.
Rather than acquiring the project outright, Energea is providing development capital through a secured convertible loan to the project’s special purpose entity, CT Solar One, LLC. The structure features monthly cash interest payments, a five-year maturity on each loan advance, and a first-priority security interest in 100% of the project’s equity, according to the company.
Iron Spur is being developed by Levona Renewables, a U.S.-based utility-scale solar developer. Levona and Energea are exploring additional opportunities to collaborate on future utility-scale solar projects in the region, according to Energea.
Previously, AltsWire reported Energea’s LATAM Energy Portfolio launch, the company’s fourth active investment strategy. It invests in distributed solar projects across South America, Central America, and the Caribbean.
Energea is a U.S.-based renewable energy investment platform that connects individual investors with solar projects worldwide. The company specializes in acquiring and operating community solar projects that provide clean energy access to residential and commercial subscribers, the firm said. Since launching in 2020, Energea has raised more than $450 million and generated a 12% realized internal rate of return for investors, according to the company.
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