CIM Group’s Permanent Power Company announced the closing of an approximately $600 million construction financing facility to develop the 246 MWac Grape solar and battery storage project in California’s Westlands Solar Park. The financing package, which combines a construction‑to‑term loan, a tax‑credit bridge loan, and a letter of credit, gives the company the capital needed to move forward with a fully contracted, utility‑scale development. Once operational, Grape will generate clean electricity enough to power more than 86,000 homes in the San Joaquin Valley and will create over 400 construction jobs, underscoring the project’s economic and environmental impact in a region that hosts one of the nation’s largest permitted solar parks.
Permanent Power Company Closes $600M Construction Financing for Grape Project
The facility is structured as a $372.3 million construction‑to‑term loan, a $166.7 million tax‑credit transfer bridge loan, and a $61.3 million letter of credit. Truist serves as the administrative agent, while Wells Fargo acts as the collateral agent. Grape’s technical footprint includes 150 MWac (600 MWh) of battery energy storage systems (BESS) paired with its solar photovoltaic capacity, delivering a balanced generation‑storage solution that can smooth intermittency and provide grid‑support services. Construction is already underway on the 20,000‑acre Westlands Solar Park, and the project is expected to sustain more than 400 construction‑site jobs through its build‑out phase.
Financing Structure and Offtaker Commitment
Permanent Power Company recently signed a long‑term power purchase agreement (PPA) with an investment‑grade, regulated energy service provider that covers the entire solar and storage capacity at Grape. Avi Shemesh, Co‑Founder and Principal of CIM Group, emphasized that the financing “reflects the confidence our capital partners have in our ability to develop and deliver large‑scale power generation and energy storage projects.” The off‑taker’s commitment before the plant is completed highlights the project’s strong credit quality and provides a predictable revenue stream that underpins the loan structure. This pre‑closing of the PPA is a key factor that allowed lenders to provide such a sizable, multi‑component facility.
Portfolio Implications and Rural Opportunity Zones
When Grape comes online, it will join Permanent Power Company’s expanding portfolio, which the company projects will total approximately 1,200 MWac of solar PV and 690 MWac (2,760 MWh) of BESS. Earlier financing activity includes a $400 million commitment from funds managed by HPS Investment Partners, part of BlackRock Private Financing Solutions, aimed at advancing the company’s growth plan focused on assets located in Qualified Rural Opportunity Zones. The new $600 million facility not only funds Grape but also broadens Permanent Power’s capacity to pursue additional renewable projects across the United States, reinforcing its strategy to capitalize on long‑term secular trends in reliable, diversified power generation.
Key Takeaways
- Permanent Power Company closed an approximately $600 million construction financing facility for the 246 MWac Grape solar‑storage project.
- The financing includes a $372.3 million construction‑to‑term loan, a $166.7 million tax‑credit bridge loan, and a $61.3 million letter of credit, with Truist as administrative agent and Wells Fargo as collateral agent.
- Grape is fully contracted to an investment‑grade off‑taker, will create over 400 construction jobs, and will generate enough clean energy to power more than 86,000 California homes annually.
EnergyInsyte's Take
The financing demonstrates that capital markets remain willing to back large, fully contracted solar‑storage assets, even as developers navigate permitting and supply‑chain constraints. Executives should monitor the project’s construction milestones and the performance of the off‑taker’s PPA, as these will influence the timing of cash‑flow generation and the feasibility of similar financing structures for future Opportunity Zone projects.
Source: Businesswire
