SolarBank & CIM Group’s $100M Solar Initiative: Powering 97 MW Across the U.S.

By: Velorine

Scaling Renewable Energy Through Strategic Development

SolarBank Corporation has secured $100 million in project-based financing with CIM Group to expand its footprint in U.S. solar energy. This investment will drive the development of 21 solar projects totaling 97 MW, structured through a preferred equity joint venture under the newly formed entity, New HoldCo.

Project Scope & Execution Strategy

SolarBank, through its subsidiary Abundant Solar Power Inc. (ASP), will transfer ownership of high-value solar assets to New HoldCo, which will oversee their development. CIM Group will provide capital through preferred equity stakes, ensuring structured funding at key project milestones:

• 20% investment upon mechanical completion.
• 80% investment upon substantial completion.

To further optimize financing, SolarBank will leverage Investment Tax Credits (ITCs) by selling them to third-party buyers, unlocking additional revenue streams for the project.

https://www.nbcsandiego.com/Developer Focus: SolarBank’s Expansion Plan

With 97 MW of new solar capacity, SolarBank is reinforcing its independent power producer (IPP) status without issuing new shares ensuring sustainable growth at the project level rather than through dilution.

“This financing marks a major milestone in our expansion strategy,” said Dr. Richard Lu, President & CEO of SolarBank. “By retaining majority ownership, we strengthen our ability to scale while maintaining financial efficiency.”

CIM Group’s Role in Infrastructure Investment

CIM Group, a seasoned infrastructure investor, sees this partnership as a catalyst for renewable energy growth across North America.

“Our collaboration with SolarBank aligns with our mission to support high-impact infrastructure projects that drive sustainability,” stated Kyle Hatzes, Managing Director, Infrastructure & Impact Investments, CIM Group.

Looking Ahead: Challenges & Market Impact

• Regulatory approvals & interconnection agreements remain critical
• Market fluctuations in tax credit incentives could impact funding models
• SolarBank must secure additional financing for early-stage project execution

Despite challenges, this initiative sets a strong precedent for large-scale solar financing, positioning SolarBank as a key player in renewable energy expansion while ensuring investor-driven growth.