The U.S. Department of Energy’s Loan Programs Office announced a conditional commitment for a loan guarantee of up to $289.7 million to Sunwealth Holdco 18 LLC’s Project Polo.
The loan guarantee, if finalized, will finance the deployment of up to 1,000 solar photovoltaic systems and battery energy storage systems located primarily at commercial and industrial facilities and integrated across up to 27 states.
Sunwealth is a commercial solar financier, developer, and owner-operator based in Cambridge, Massachusetts. Sunwealth has a nine-year operating history serving commercial solar markets and has experienced zero defaults over this time. Sunwealth has partnered with SYSO Technologies of Boston, Massachusetts, to provide its distributed energy management software platform, which will allow the project to function as a virtual power plant.
Systems would be deployed across commercial buildings, multi-family properties, community solar, and other sites across up to 27 states, with an estimated aggregate capacity of 168 MW of PV and 16.8 MW (33.6 MWh) of BESS.
LPO borrowers are required to develop and ultimately implement a comprehensive Community Benefits Plan. CBPs ensure borrowers meaningfully engage with communities and labor groups to create good-paying jobs and improve the well-being of residents and workers.
Sunwealth has historically deployed over approximately 40% of its systems to benefit disadvantaged communities. For this project, Sunwealth aims to install between 20% and 50% of PV plus BESS in disadvantaged communities.
The project includes both behind-the-meter DERs and community solar projects, primarily targeting commercial and industrial properties. Project sites include building rooftops, parking lots, and underutilized land parcels across the United States.
The Sunwealth VPP offers advanced management of PV and BESS, enhanced forecasting of PV production and coincident peaks, and aggregation and dispatch of DERs. The software manages the PV and BESS as a VPP to support grid stability and resilience while also generating additional revenue by enabling participation of DERs in VPP programs and wholesale markets.
The loan guarantee is offered through LPO’s Title 17 Clean Energy Financing Program, which includes financing opportunities for innovative energy and supply chain projects and projects that reinvest in existing energy infrastructure.
While this conditional commitment indicates DOE’s intent to finance the project, DOE and the company must satisfy certain technical, legal, environmental, and financial conditions and DOE must complete environmental review before the Department decides whether to enter into definitive financing documents and fund the loan guarantee.
