Wells Fargo Surpasses $10 Billion in Renewable Energy Tax-Equity Investments
February 25 2021 - 8:00AM
Business Wire
Renewable Energy & Environmental Finance group funded
500-plus projects in 32 states
Wells Fargo Renewable Energy & Environmental Finance (REEF)
today announced it recently surpassed $10 billion in tax-equity
investments in the wind, solar, and fuel cell industries. Wells
Fargo has invested in more than 500 projects, helping to finance
12% of all wind and solar energy capacity in the U.S. over the past
10 years.
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Wells Fargo Renewable Energy &
Environmental Finance team recently surpassed $10 billion in
tax-equity investments in the wind, solar, and fuel cell sectors.
(Photo: Wells Fargo)
“Wells Fargo uses its tax capacity in a meaningful way to invest
in projects that contribute to the nation’s acceleration toward a
low-carbon economy,” said Philip Hopkins, head of Wells Fargo
Renewable Energy & Environmental Finance, a part of Wells Fargo
Commercial Capital. “We are proud to play a key role in the growth
of this important industry, and honored to work closely with so
many leading sponsors and developers of wind and solar energy
projects.”
To stimulate growth of renewable energy resources and accelerate
the transition to a lower-carbon economy, the federal government
provides project developers with incentives such as Production Tax
Credits, Investment Tax Credits, and accelerated depreciation.
However, because most developers lack sufficient tax capacity, they
rely on tax-equity investors like Wells Fargo for funding.
Wells Fargo made its first tax-equity commitment to a wind
project in 2006, and shortly thereafter began investing in
distributed-generation solar, which generates electricity where it
is used. Since then, the bank has grown into one of the leading
tax-equity investors in the nation’s renewable energy sector,
financing projects in 32 states. Projects supported by REEF
produced enough electricity in 2020 to power more than 3 million
average-sized U.S. homes for a year.
Wells Fargo provided approximately $2.4 billion in financing to
the renewable energy industry in 2020, representing an increase of
$1 billion from 2019. Projects include Ørsted’s 227-megawatt Muscle
Shoals solar PV development, which will be the largest in the state
of Alabama upon completion. During construction, Muscle Shoals is
employing 300 people, generating an estimated $1 million in sales
and use tax revenue for the community. In its first 20 years of
operation, the project is expected to deliver more than $15 million
in incremental property taxes, much of which will be directed to
education.
Ørsted acquired Muscle Shoals from Longroad Energy, who
developed the project. “Longroad values its relationship with Wells
Fargo and looks forward to the future of the partnership as we
jointly advance the transition to clean and sustainable energy
created in the United States,” said Paul Gaynor, CEO of Longroad.
“Wells Fargo’s REEF group is fair, innovative, and knowledgeable,
with a long history of investing in renewable energy, and they have
acquired a wealth of knowledge from these experiences.”
Other notable REEF investments
include:
- Committing $350 million in tax-equity to AES Clean Energy, one
of the top renewables growth platforms in the country that owns and
operates more than 2.6 gigawatts of renewable generation across the
U.S. This financing will support the construction and development
of the Spotsylvania Solar Energy Center in Virginia that, upon
completion, will represent the largest U.S. solar project east of
the Rocky Mountains
- Financing the installation of carport solar systems at 25 sites
in Kern High School District in Bakersfield, California. The system
generates enough power for 23 schools and two administration
buildings, and is expected to save the district $80 million in
electricity costs over 25 years
In 2018, Wells Fargo committed to providing $200 billion in
financing to sustainable businesses and projects by 2030,
earmarking $100 billion for transactions that directly contribute
to driving a low-carbon future.
“Renewable energy is an important factor in addressing climate
change,” said Mary Wenzel, head of Wells Fargo Sustainability and
Corporate Responsibility. “Our tax-equity investments are essential
to meeting our commitment to being an industry leader through
supporting new developments, working with utility and power
clients, and by achieving 100% renewable energy in our
operations.”
About Wells Fargo
Wells Fargo & Company is a leading financial services
company that has approximately $1.9 trillion in assets and proudly
serves one in three U.S. households and more than 10% of all middle
market companies in the U.S. We provide a diversified set of
banking, investment and mortgage products and services, as well as
consumer and commercial finance, through our four reportable
operating segments: Consumer Banking and Lending, Commercial
Banking, Corporate and Investment Banking, and Wealth and
Investment Management. Wells Fargo ranked No. 30 on Fortune’s 2020
rankings of America’s largest corporations. In the communities we
serve, the company focuses its social impact on building a
sustainable, inclusive future for all by supporting housing
affordability, small business growth, financial health and a
low-carbon economy. News, insights and perspectives from Wells
Fargo are also available at Wells Fargo Stories.
Additional information may be found at www.wellsfargo.com |
Twitter: @WellsFargo.
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Trina Shepherd, 312-339-0012 Latrina.shepherd@wellsfargo.com
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