Lightsource bp closes tax equity for 187-MW Peacock Solar financing

Oct 22, 2025 09:57 AM ET

Lightsource bp secured a $97.9 million tax equity commitment from Pinnacle Financial Partners for its 187-MW Peacock Solar project in Texas.

Lightsource bp closes tax equity for 187-MW Peacock Solar financing

Lightsource bp has finalized a $97.9 million tax equity investment with Pinnacle Financial Partners to finance the 187-MW Peacock Solar project in San Patricio County, Texas—marking the pair’s second such transaction and underscoring the continued importance of tax equity in U.S. utility-scale solar. The commitment unlocks procurement, construction, and interconnection milestones on a site designed to deliver large blocks of low-cost daytime power to the ERCOT grid.

Peacock Solar follows a contemporary, grid-friendly blueprint: high-efficiency modules mounted on single-axis trackers optimized for the Gulf Coast’s irradiance and wind profile; a DC/AC ratio geared to maximize annual yield; and plant-level controls capable of reactive power support, ride-through during disturbances, and rapid curtailment in line with ERCOT’s evolving requirements. While storage isn’t included at day one, the design typically preserves pad space and transformer headroom for a future two-to-four-hour battery, enabling energy shifting and ancillary-service revenues as market spreads warrant.

Tax equity remains the keystone of U.S. solar finance, monetizing federal incentives that lower the levelized cost of energy. For lenders and sponsors, repeat relationships with tax investors reduce friction and speed closings; for offtakers, they translate into sharper prices on long-term contracts. The deal also reflects tightening supply chains for electrical balance-of-plant: early capital lets developers reserve transformers and protection gear that often set the critical path.

Community integration features prominently in Texas siting. Construction will bring local jobs and supplier spending; plans typically include traffic management, dust control, drainage sized for heavy rain, and wildlife-friendly fencing. After commissioning, long-term O&M sustains technical roles and steady county tax receipts, while species-rich groundcover and hedgerow plantings improve biodiversity on previously monoculture fields.

For ERCOT, each new solar block smooths midday prices and reduces fuel burn. As electrification and data-center growth lift evening demand, the option to add batteries at strong nodes like Peacock’s will be pivotal—shifting generation into peak hours and providing fast frequency response when it matters most.

With tax equity locked, Lightsource bp can keep construction cadence tight and move Peacock toward staged energization—converting a paper pipeline into electrons on Texas wires.