Generate Capital closed a $154.5 million tax equity commitment with SOLCAP, KeyState’s tax equity investment platform, supporting 10 community solar projects across New York and Illinois. The portfolio totals 43 MWac of generation capacity.
The transaction represents the sixth tax equity fund between Generate and KeyState.
Their partnership began in 2021 and has focused on channeling institutional capital into distributed clean energy infrastructure.
The new fund follows an $85 million community solar tax equity fund announced by Generate and KeyState in October 2025.
That earlier vehicle is now nearing final funding.
Generate said the latest transaction also builds on broader capital-raising momentum across its infrastructure platform.
The company has secured approximately $1.6 billion in financing commitments so far in 2026 to support deployment of critical infrastructure.
Generate entered the community solar market in 2017 and has since built a large distributed solar investment and operating platform.
The company works with capital providers, developers, utilities, and other partners to finance and deploy community-scale clean energy projects.
Generate said the new fund will help expand access to reliable and cost-effective clean power for customers and communities.
For KeyState, the transaction continues the expansion of its SOLCAP platform, which is designed to connect institutional capital with tax equity investment opportunities.
The partners said the structure allows them to support community solar projects at greater scale while providing investment opportunities tied to distributed power infrastructure.
Willis Towers Watson served as the investment tax credit insurance broker for the transaction.
Holland & Knight represented Generate as legal counsel.
Generate was founded in 2014 and develops, finances, builds, owns, and operates infrastructure across energy and other essential services.
Since its founding, the company has raised more than $10 billion in capital.
KEY QUOTES:
“Long-term capital partnerships are essential to our ability to scale critical infrastructure and meet growing demand for power.”
Peggy Flannery, Managing Director and Head of Distributed Generation at Generate Capital
“Our sixth fund with KeyState reflects both the strength of our longstanding partnership and continued interest from institutional capital providers in investing alongside Generate. Together, we’re putting capital to work in projects that expand access to reliable, cost-effective clean power for communities across the country.”
Peggy Flannery, Managing Director and Head of Distributed Generation at Generate Capital
“Generate has been a trusted partner to KeyState and the SOLCAP platform for more than five years, and this sixth fund reflects the strength and consistency of that relationship.”
Allan Riska, Chief Investment Officer at KeyState
“Together, we’ve been able to bring institutional capital to high-quality community solar projects at meaningful scale. We’re pleased to deepen our partnership with Generate and continue investing in projects that deliver both compelling investment opportunities and tangible benefits for communities and ratepayers.”
Allan Riska, Chief Investment Officer at KeyState
