Large-Scale Solar Farm, Arizona

About this Property

The Large-Scale Solar Farm in Arizona is a utility-grade renewable energy infrastructure investment spanning 1,200 acres in the Sonoran Desert — one of the highest solar irradiance zones in the world. The facility houses 480,000 bifacial solar panels with a combined installed capacity of 250 megawatts (MW), making it one of the 20 largest solar installations in the United States. The farm has a 25-year Power Purchase Agreement (PPA) with a major Arizona utility company at a fixed rate of $0.042/kWh, providing complete revenue certainty for the duration of the investment. The PPA rate includes a 1.5% annual escalator, protecting against inflation. The facility has been operational since 2022 and has consistently achieved 98.2% uptime, generating approximately 520 gigawatt-hours (GWh) of clean electricity annually. THE RENEWABLE ENERGY INVESTMENT CASE The global energy transition is the defining infrastructure investment theme of the next 30 years. The US Inflation Reduction Act (IRA) provides unprecedented tax incentives for renewable energy projects, including a 30% Investment Tax Credit (ITC) that significantly enhances project economics. Utility-scale solar is now the cheapest form of new electricity generation in history, with costs having fallen 90% over the past decade. INVESTMENT STRUCTURE Investors hold equity in the project company through a tax-equity partnership structure, enabling them to benefit from the ITC and accelerated depreciation allowances. Cash distributions are made quarterly from PPA revenue after deducting operations and maintenance costs ($8.5M/year), insurance ($1.2M/year), and land lease payments ($2.1M/year). PROJECTED RETURNS Annual gross revenue: $21.8M. Annual net cash flow to investors: $10.1M. Cash-on-cash yield: 8.4% annually. Including tax benefits (ITC and depreciation), the effective after-tax IRR for US taxpayers is 14–18%. For non-US investors, the cash yield of 8.4% is the primary return metric, with additional upside from the terminal value of the asset at the end of the PPA. RISK PROFILE Very Low. 25-year PPA with a regulated utility eliminates revenue risk. Proven technology with 25+ year operational lifespan. Government-backed tax incentives enhance returns. ESG-compliant investment qualifying for green bond frameworks.