Hudson Sustainable Group has closed a $28.5 million senior secured financing for Heritage Energy Holdings, advancing a partnership to scale a distributed generation platform across the Texas ERCOT market.
The transaction, announced February 23, 2026, positions Hudson as the exclusive advisor and co-sponsor. The financing provides foundational capital for Heritage’s expansion of sub-10 MW battery storage and solar projects throughout Texas.
The funding was provided by Eagle Point Credit and supports Heritage’s strategy to build and operate a network of distributed assets designed to aggregate into utility-scale impact. Heritage’s integrated “Gen-Tailer” model combines licensed retail electricity operations through its Heritage Power affiliation with distributed generation and virtual power plant capabilities. This structure allows the company to bypass lengthy interconnection queues while enhancing grid reliability and capturing value from ERCOT market volatility.
The financing also facilitates the acquisition and transfer of safe-harbored battery assets into the Heritage platform, ensuring compliance with key development timelines. Hudson managed the safe-harbor process to meet critical year-end deadlines and will continue to support broader platform expansion through strategic development and institutional positioning.
The transaction was led by Hudson partner Dustin Muscato, whose longstanding relationship with Heritage helped bring the collaboration together and guide execution.
Heritage operates in a market environment marked by structural load growth and rising demand for flexible distributed resources within ERCOT, creating favorable conditions for its integrated distributed generation model. The partners say the deal establishes the foundation for building an institutional-grade distributed energy infrastructure platform.
Heritage Energy Holdings is a vertically integrated energy platform in ERCOT with a portfolio of distributed solar and battery storage assets and a power purchase arrangement with Heritage Power. The company was founded by electricity entrepreneurs with more than 40 years of combined experience in the Texas deregulated market and serves residential, commercial, governmental, and industrial customers.
Hudson Sustainable Group is a strategic infrastructure investment and advisory firm focused on renewable energy, distributed generation, and sustainable infrastructure platforms. Led by Neil Z. Auerbach, the firm provides advisory, capital raising, and co-investment solutions to companies developing and operating sustainable infrastructure assets.
Support: Legal counsel for Heritage was provided by Baker Botts LLP and Denmon Sigler Law, P.C..
KEY QUOTES
“We are proud to partner with Heritage to advance this platform. Heritage represents an innovative approach to distributed generation that addresses critical needs in the Texas energy market. Hudson has worked closely with Heritage to structure a scalable platform that integrates distributed assets with retail energy operations and virtual power plant capabilities. The transaction was led by Hudson partner Dustin Muscato, whose longstanding relationship with Heritage helped bring the collaboration together and guide its execution. This transaction establishes the foundation for platform growth in distributed energy infrastructure and service delivery.”
Neil Z. Auerbach, Chairman And CEO, Hudson Sustainable Group
“Hudson’s partnership was instrumental in achieving this financing milestone. Their deep understanding of both energy infrastructure markets and capital markets enabled them to structure and execute a complex transaction under significant time pressure. With the support of Hudson and with this Eagle Point safe harbor kick-off financing, we are positioned to execute on our development pipeline and strengthen the Texas grid by delivering reliable, cleaner power to communities across the state.”
Tim Sanchez, Chief Executive Officer, Heritage Energy Holdings
