Distributed Solar Developer Dimension Energy Attracts $857M in Capital and Construction Credit
Distributed energy developer Dimension Energy is accelerating the growth of its solar footprint after securing $857 million of additional capital from lending partners.
The new capital announced this week includes a $200 million corporate credit facility (flexible loan arrangement) with lead lenders Nuveen Energy Infrastructure Credit and HPS Investment Partners. Combined with a $657 million construction-to-term and tax equity financing package, the total arrangement will support a 149-MW portfolio consisting of 29 distributed solar projects across Illinois, New Jersey, New York, Pennsylvania and Virginia.
Financing partners for the $657 million debt package include MUFG Bank, First Citizens Bank, ING Capital and the National Bank of Canada.
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Dimension, an owner and operator of more than 600 MW of distributed energy infrastructure, plans to use the capital to enable its solar pipeline to move more efficiently from development into construction. According to a release, the financing positions the company to reach its goal of 1 GW of operating assets by 2028.
“These new commitments from our financing partners reflect the strength of our platform,” said Rafael Dobrzynski, CEO and co-founder of Dimension Energy, in a statement. “This capital will enable us to keep scaling with discipline and speed at a moment when demand for distributed power has never been higher.”
This latest round of funding builds on a $650 million community solar portfolio financing round announced in April.
Community solar projects, which provide subscribers with utility bill savings and generate power close to where it is used, are another valued proposition Dimension is focusing on advancing amid U.S. electric prices reaching historic highs.
“With power demand accelerating and transmission and distribution costs rising alongside generation costs, distributed solar is well positioned to deliver reliable power closer to load,” said Don Dimitrievich, global head of Nuveen. “Upsizing our commitment reflects Nuveen Energy Infrastructure Credit's continued conviction and confidence in Dimension's ability to execute at scale.”
Dimension has recently completed two distributed energy resource projects this year that highlight its solar growth efforts on the East Coast.
In May, Dimension completed a 9.9-MW community solar installation in Somerset, New Jersey. Combined with a previous 4.97 MW system built under a pilot program, the project’s warehouse now reportedly hosts the largest industrial rooftop community solar installation in the state’s history. Dimension also energized three Pennsylvania solar warehouse rooftops (9 MW) this month for STAG Industrial, featuring one facility northeast of Pittsburgh in O’Hara Township and two in Allentown.
Private equity firm Partners Group acquired a controlling stake in Dimension Energy in 2021. The acquisition was reportedly aimed at backing the company's expansion into new markets and scaling it into a billion-dollar U.S. platform focused on full-scale decarbonization operations.
