DSD Secures $70 Million Tax Equity Financing

SCHENECTADY, N.Y. – May 4, 2022 – DSD Renewables (DSD) secured a $70 million tax equity investment from Morgan Stanley Renewables Inc. (Morgan Stanley) to support the development of more than 87 megawatts (MWs) of distributed solar and storage systems to be placed in service this year. The tax equity financing enables DSD to capture the full tax attributes of the systems and optimize value. This marks DSD’s second partnership with Morgan Stanley, who previously contributed to a $250 million fund raised by DSD in 2019 to support a similar portfolio of projects.

The tax equity financing enables DSD to capture the full tax attributes of the systems and optimize value.

“Morgan Stanley continues to be a valuable financial partner and this follow-on investment will allow us to continue delivering projects and value at scale,” said Jamie Hutson, Chief Investment Officer at DSD. “The tax equity financing will enable us to unlock the full value of projects, benefiting all stakeholders involved.”

The fund will support commercial power purchase agreement (PPA), feed-in-tariff and community solar projects, with a sizable portion going toward projects in New York, New Jersey, and California.

“We’re pleased to renew our financial partnership with DSD to strengthen their platform,” said Jorge Iragorri, Managing Director and Head of Alternative Financing Group at Morgan Stanley. “We are proud to be working together to support clients in growing renewable energy across the U.S.”

This funding comes one month after DSD secured a $200 million preferred equity investment from a fund managed by the Infrastructure and Power strategy of Ares Management Corporation to fuel continued strategic growth.

McDermott Will & Emery LLP served as counsel to DSD for the transaction.