Solmar Insights
Avantus has finalized a $300 million tax equity commitment with Truist Bank to support the development of the Aratina 2 solar and storage facility in Kern County, California. This latest financing round follows $525 million in construction financing secured in July and positions the 150 MW solar and 452 MWh storage project for completion by end of 2026.
Key figures
$300 million tax equity commitment
$525 million construction financing
150 MW solar, 452 MWh storage capacity
Kern County, California
Structure of the financing
The commitment from Truist Bank represents the final stage of financing for Aratina 2, enabling construction to move forward and the project to enter the Avantus operating portfolio later in 2026. This marks the second tax equity collaboration between Avantus and Truist, following a similar $300 million investment for the adjacent Aratina 1 project. The transaction continues Truist’s participation in Avantus-led projects, building on its involvement in both tax equity and construction finance for Aratina 1.
According to Avantus’s SVP of project finance, the financing structure reflects trust built through previous successful deals in the region. By layering tax equity on top of construction finance, Avantus secures the capital needed to both complete construction and transition the asset into long-term operation. Truist’s head of tax equity pointed to shared goals in sustainable infrastructure as a basis for the deepening partnership between the two companies.
Asset details and ownership
Aratina 2 is a utility-scale development consisting of 150 MW of solar generation paired with 452 MWh of battery storage. It is located near the existing 200 MW/500 MWh Aratina 1 facility, which recently entered commercial operation. Both assets are being developed and operated by San Diego-based Avantus, with the company retaining an ownership stake in each.
The two projects together form the Aratina Solar Center, representing a significant renewable and storage capacity addition in Kern County. While electricity from Aratina 1 is contracted to Central Coast Community Energy and Silicon Valley Clean Energy under 20-year power purchase agreements, Aratina 2 will deliver energy to Southern California Edison under a 15-year PPA. This delivery structure supports long-term revenue for the projects while serving both municipal and investor-owned utility offtakers in California.
Impact on California power and storage markets
The development of Aratina 2 adds meaningful solar capacity and storage resources to California’s grid at a time of growing demand for renewable energy-backed reliability. The integration of nearly 500 MWh of storage with 150 MW of solar enables Avantus to deliver firmed power output across peak net load hours, which remains a key priority for California ISO and load-serving entities responding to shifting resource adequacy rules and system reliability concerns.
The 15-year PPA with Southern California Edison demonstrates ongoing utility appetite for long-dated renewable-plus-storage contracts, supporting grid flexibility in Kern County and the broader Desert Southwest. Pairing new tax equity and construction financing with major offtake contracts addresses the dual challenge of project bankability and market entry at multi-hundred MW scale.
Pipeline growth for Avantus
For Avantus, the financial close on Aratina 2 marks significant progress toward its stated target of commissioning 788 MW of solar and storage in 2026, with an additional 800 MW targeted for construction start by year-end. The replication of the Aratina 1 structure, combining direct ownership, institutional tax equity, and long-term PPAs, positions Avantus to pursue scale while controlling project execution and asset operations.
Truist’s repeat participation might signal growing institutional comfort with large portfolio tax equity exposure in the California renewables market, anchored by proven developers and long-term utility offtake. With both Aratina projects serving as precedents, Avantus could leverage similar structures for future assets aimed at regulated and community choice buyers across the Desert Southwest and West Coast.
Outlook for tax equity-backed infrastructure
The continued flow of tax equity financing into large-scale solar-plus-storage assets underscores the critical role such capital plays in unlocking project deployment under the current US tax code. For developers operating in resource-rich, transmission-accessible regions like Kern County, layered financing is often essential to bridge the gap between construction risk and operational stability.
As regulatory and market frameworks in California demand greater grid flexibility, infrastructure investors and regional utilities are likely to maintain interest in similar deals. The successful closing for Aratina 2 provides a concrete blueprint for structuring capital in support of both near-term construction targets and long-term clean energy delivery commitments. Buyers should take note of the timing, structure, and parties involved as indicators of viable strategies for future transactions in the sector.
What this means for buyers
Power and storage capacity in California is the central asset class in this story. The $300 million tax equity deal with Truist for a 150 MW solar and 452 MWh storage asset enables firm delivery to Southern California Edison under a 15-year PPA. Buyers may now see more executable, large-scale utility storage assets moving to construction and PPA lock-in in 2026.
Reporting via the original publisher
