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The debt and tax equity package involved Indian Energy, DOE and Starbucks

Solar and battery storage is coming to San Diego County’s Alpine, California, for the Viejas Band of Kumeyaay Indians, a federally recognized, self-governing Indian Nation.

U.S. Bancorp Impact Finance worked with Indian Energy, the U.S. Department of Energy (DOE) and the Viejas Band to originate, structure, underwrite and close on a debt plus tax equity financing package for the Viejas Microgrid project.  In addition, Impact Finance introduced Starbucks Corporation to the project and facilitated their participation as a tax equity co-investor and Renewable Energy Credit (REC) purchaser.

The Viejas Microgrid Project, which is already under construction with expected completion in September 2025, will provide the Viejas Band new, reliable utility-scale renewable energy generation and storage infrastructure through the installation of a 15 MW photovoltaic solar generation system and a 70 MWh battery long duration energy storage system that will provide power to the Viejas Casino & Resort.

“This solar microgrid project will enable us to create a reliable and sustainable source of clean energy for our gaming, hospitality, and retail operations going forward,” said Chairman John Christman of the Viejas Band of Kumeyaay Indians. “In turn, the associated non-lithium battery system supports the environmental protection and cultural stewardship of our ancestral land, thereby ensuring the vibrant future of our children.”

Darren Van’t Hof, who serves as Impact Finance’s managing director of environmental finance added, “U.S. Bancorp Impact Finance is excited to partner with Indian Energy LLC and the Viejas Band of Kumeyaay Indians, an indigenous community dedicated to energy independence. We appreciate the collaboration among all project participants and look forward to supporting the construction and completion of this impactful investment.”

According to the Department of Energy, the carport solar PV + BESS microgrid project is expected to create 250 construction jobs and eight operational jobs. Indian Energy, a 100% Native American-owned and operated microgrid developer and systems integrator, is the developer of the project. Impact Finance is providing the construction and permanent debt for the project with a DOE guaranty. Impact Finance and Starbucks are providing the tax equity for the project. 

“We’re grateful for the trust that Starbucks placed in us to originate, structure, underwrite and close this highly impactful investment,” said Impact Finance Senior Vice President of Syndications Chris Roetheli. “Collaborations such as this highlight our approach to interconnected client management and we’re excited to continue introducing our tax credit investment offerings to additional bank clients.”

Impact Finance is among the largest tax credit syndicators in the nation. In 2023, the U.S. Bank subsidiary syndicated more than $2.8 billion by building customized state and federal tax credit investment portfolios across multiple asset classes.

“Together with our longstanding partner U.S. Bancorp Impact Finance, we're proud to help support solar and battery energy storage for the Viejas Band as part of our environmental promise,” said Michael Kobori, Starbucks chief sustainability officer.  “As we look to the future, we hope this model inspires other companies to make investments advancing renewable energy access in historically underserved communities.”

In 2023, Impact Finance financed 2.7 gigawatts of renewable energy. To accelerate and advance the transition to a low-carbon economy, U.S. Bancorp set a goal in 2021 to finance $50 billion in environmental initiatives by 2030.