NineDot Energy, a leading developer of community-scale battery energy storage systems (BESS) in the New York City metro area, announced the closing of the company’s first tax equity financing of over $40 million. The deal was facilitated by Monarch Private Capital and involves seven battery storage projects in the New York City region.
This tax equity deal was enabled by the Inflation Reduction Act (IRA) which expanded the investment tax credit (ITC) to include battery storage projects. And with this transaction, NineDot receives new equity capital, while the investing partner can use the related tax credits to reduce their future tax liabilities. NineDot’s proceeds from this capital infusion will contribute to the company’s growing pipeline of over 50 projects in development, construction and operation in the New York City metro area.
A 5-megawatt battery site could provide enough energy to power 5000 New York City households for four hours on a hot summer day. And NineDot’s 3-megawatt Bronx site demonstrated the real-world value of community battery storage during New York City’s June and July 2024 heat waves.
Including this funding, NineDot Energy has secured approximately $450 million to acquire, develop and operate battery storage sites across the New York City boroughs, Westchester County and Long Island. And NineDot’s first battery storage site is in the Northeast Bronx, and the company anticipates many of its sites under construction will become operational in the next several months, supporting a cleaner and more resilient grid for the New York City community. NineDot remains on track for meeting or exceeding its goal of delivering 400MW of battery storage in development, construction or operation by the end of 2026.
KEY QUOTE:
“Building energy projects to fight climate change requires a significant amount of capital and creativity. NineDot continues to show how to finance growth with traditional and non-traditional sources of funding, from institutional investors, infrastructure lenders, public agencies, renewable energy land purchasers and now our newest capital source, tax equity partners. We are confident that battery storage projects will attract even more backers, as these sites deliver predictable costs and cash flows while providing important societal benefits.”
-David Arfin, NineDot Energy CEO and Co-founder
