Recurrent Energy secures $260 million for Kentucky solar project

Published 17/07/2025, 12:24
Recurrent Energy secures $260 million for Kentucky solar project

KITCHENER, Ontario - Recurrent Energy, a subsidiary of Canadian Solar Inc. (NASDAQ:CSIQ), has closed $260 million in project financing and tax equity for its Blue Moon Solar facility in Harrison County, Kentucky, the company announced Thursday. The deal comes as Canadian Solar, currently trading at just 0.3 times book value, appears undervalued according to InvestingPro analysis.

U.S. Bank, through its subsidiary U.S. Bancorp Impact Finance, is providing both tax equity and construction financing for the 94-megawatt project, which is currently under construction and expected to begin commercial operation in 2026. This financing adds to Canadian Solar’s existing debt load of $5.9 billion, reflecting the capital-intensive nature of utility-scale solar development.

The solar facility has secured a power purchase agreement with Constellation, which will purchase the power and renewable energy certificates produced by the project. Recurrent Energy will maintain ownership and operate the facility after it becomes operational.

"Harrison County is open to investment, and we are pleased to work with Recurrent Energy on their newest energy facility," said Jason Marshall, Harrison County Judge/Executive. "Blue Moon Solar will provide a major source of new tax revenue to our county."

The project represents Recurrent Energy’s first venture in Kentucky and is expected to create hundreds of construction jobs while generating tax revenue for the local community.

Ismael Guerrero, CEO of Recurrent Energy, said, "Blue Moon Solar will generate affordable, locally produced energy that will support Kentucky’s economic growth."

Darren Van’t Hof, Managing Director of Environment Finance for U.S. Bancorp Impact Finance, noted that Blue Moon Solar is one of several projects the bank has financed for Recurrent Energy.

According to the press release, Recurrent Energy has developed approximately 12 GWp of solar projects and 6 GWh of energy storage projects globally to date. For investors seeking deeper insights into Canadian Solar’s financial health and growth prospects, InvestingPro offers comprehensive analysis including 12 additional ProTips and detailed financial metrics in its Pro Research Report, part of its coverage of 1,400+ US equities.

In other recent news, Sunrun’s energy storage business is projected to benefit from investment tax credits extended through 2037, according to Mizuho. Unlike solar projects facing phased-out credits, energy storage projects that begin construction by 2033 will receive full credits, providing a favorable outlook for Sunrun. Meanwhile, Canadian Solar has reported first-quarter earnings that exceeded expectations, leading Mizuho to raise its price target from $16 to $17, while Jefferies adjusted its target to $13.70, maintaining a Buy rating. Canadian Solar’s first-quarter revenue was $1,197 million, with a net loss of $34 million, and the company has revised its full-year 2025 sales forecast downward due to potential impacts from policy changes. Despite these challenges, Canadian Solar anticipates improved gross profit margins in the second quarter, driven by increased module and energy storage shipments. JPMorgan has maintained an Underweight rating on Canadian Solar, citing risks related to legislative developments. Oppenheimer, however, continues to rate Canadian Solar as Outperform, with a steady price target of $23, emphasizing the company’s strategic positioning and development assets. These recent developments highlight the evolving landscape for Sunrun and Canadian Solar amidst changing market conditions and regulatory environments.

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