Enlight Renewable Energy Secures Nearly $150 Million Tax Equity Financing From Wells Fargo For Quail Ranch Solar Project In New Mexico

Enlight Renewable Energy, a global renewable energy developer and independent power producer, announced that its U.S. subsidiary, Clēnera Holdings, has finalized a tax equity agreement with Wells Fargo Bank N.A. for the Quail Ranch project in New Mexico. Under this agreement, Wells Fargo will provide tax equity financing of $131 million following the project’s commercial operation date (COD), which is expected to increase to nearly $150 million with additional pay-go contributions during the first ten years of operation.

The Quail Ranch project is a co-located solar and energy storage facility that will include 128 megawatts (MW) of solar generation and 400 megawatt-hours (MWh) of battery energy storage. The total investment in the project amounts to approximately $275 million. Commercial operations are anticipated towards the end of 2025. Once fully operational, Quail Ranch is expected to generate about $24 million in annual revenues during its first full year, with an estimated EBITDA of around $17 million. The project shares its interconnection infrastructure with another Enlight project, Atrisco, as part of the company’s “Connect and Expand” strategy.

This approach allows Enlight to utilize large-scale interconnections efficiently, adding incremental capacity while achieving cost savings and operational efficiencies. Quail Ranch has secured a 20-year power purchase agreement (PPA) with the Public Service Company of New Mexico (PNM), an investment-grade utility. This long-term PPA ensures stable and predictable revenues throughout the contract period. The project also benefits from federal clean energy incentives, including Production Tax Credits (PTC) for the solar component and Investment Tax Credits (ITC) for the energy storage component.

Additionally, Quail Ranch is expected to qualify for the 10% Energy Community Adder under the U.S. Inflation Reduction Act, further enhancing its financial viability. This transaction marks Enlight’s fifth tax equity deal in the United States, bringing the company’s total tax equity partnerships in the country to nearly $1 billion. These partnerships underscore Enlight’s growing presence in the U.S. renewable energy market and its commitment to expanding its clean energy portfolio.

Adi Leviatan, Chief Executive Officer of Enlight, stated that the completion of this tax equity deal represents another milestone in the company’s expansion across the United States. He emphasized that partnering with a leading institution like Wells Fargo demonstrates both the strength of the Quail Ranch project and the robustness of Enlight’s overall strategy to develop high-quality renewable energy assets.

Jared McKee, Chief Executive Officer of Clēnera, added that Quail Ranch builds on the company’s previous successes in New Mexico. He noted that the collaboration with Wells Fargo through this tax equity arrangement reinforces Clēnera’s growth strategy in the U.S. renewable energy sector and supports its mission to deliver reliable and affordable clean power at scale.