NineDot grows capital base with new ITC partnership for seven upcoming NYC battery energy storage projects
October 09, 2024 02:20 PM Eastern Daylight Time
NEW YORK–(BUSINESS WIRE)–NineDot Energy®, the leading developer of community-scale battery energy storage systems (BESS) in the New York City metro area, today announced the closing of the company’s first tax equity financing of over $40 million. The transaction was facilitated by Monarch Private Capital and involves seven battery storage projects in the New York City region.
“Building energy projects to fight climate change requires a significant amount of capital and creativity,” said David Arfin, NineDot Energy CEO and Co-founder. “NineDot continues to show how to finance growth with traditional and non-traditional sources of funding, from institutional investors, infrastructure lenders, public agencies, renewable energy land purchasers and now our newest capital source, tax equity partners. We are confident that battery storage projects will attract even more backers, as these sites deliver predictable costs and cash flows while providing important societal benefits.”
This tax equity transaction was enabled by the Inflation Reduction Act (IRA) which expanded the investment tax credit (ITC) to include battery storage projects. With this transaction, NineDot receives new equity capital, while the investing partner can use the related tax credits to reduce their future tax liabilities. NineDot’s proceeds from this capital infusion will contribute to the company’s growing pipeline of over 50 projects in development, construction and operation in the New York City metro area.
A 5-megawatt battery site can provide enough energy to power 5000 New York City households for four hours on a hot summer day. NineDot’s 3-megawatt Bronx site demonstrated the real-world value of community battery storage during New York City’s June and July 2024 heat waves.
Including this investment, NineDot Energy has secured approximately $450 million to acquire, develop and operate battery storage sites across the New York City boroughs, Westchester County and Long Island. NineDot’s first battery storage site is in the Northeast Bronx, and the company anticipates many of its sites under construction will become operational in the next several months, supporting a cleaner and more resilient grid for the New York City community. NineDot remains on track to meet or exceed its goal of delivering 400MW of battery storage in development, construction or operation by the end of 2026.
About NineDot Energy
NineDot Energy is the leading community-scale battery storage developer and operator in the New York City metropolitan region. We create innovative urban energy solutions that support a more resilient grid, deliver economic savings, reduce carbon emissions and improve environmental equity. NineDot is also expanding beyond stationary storage to incorporate mobile batteries and electric vehicle charging into some of our current and future sites. NineDot Energy’s name derives from the classic mathematical puzzle for sparking out-of-the-box solutions. We are based in Brooklyn, New York at NYU’s Urban Future Lab. Learn more at nine.energy.
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