AUSTIN, Texas — Energea has officially launched construction on the 140 MW Iron Spur Solar Project in Snyder, Texas, marking a significant step in the company’s expansion into utility-scale renewable energy in the United States.
The global renewable energy developer and operator confirmed the project is expected to reach full commercial operation by early 2029. Iron Spur represents Energea’s first industrial-scale solar investment in the U.S., supported through a structured financing approach designed to generate early returns while positioning the company for long-term ownership.
Energea has committed up to $5 million in secured convertible financing for the project, with an initial investment of $762,000 made through its Solar in the USA portfolio.
“Iron Spur is a strategic evolution for our Solar in the USA portfolio, adding utility-scale exposure and immediate cash generation during the traditionally non-income-producing construction phase,” said Mike Silvestrini, Co-Founder and Managing Partner at Energea. “We see excellent investment opportunities in industrial-scale solar and anticipate expanding further beyond distributed generation projects for which we are known, while maintaining Energea's focus on immediate cash yield and strong contractual protection. The Iron Spur Project speaks to our focus on risk-adjusted returns, providing secured debt protection today while preserving the optionality to convert to majority equity ownership as the project reaches key milestones.”
Rather than acquiring the project outright, Energea is financing development through a secured, convertible loan issued to the project’s special purpose entity, CT Solar One LLC. This structure includes monthly cash interest payments, offering immediate income during the construction phase — a period typically devoid of revenue generation for solar projects.
Each loan advance carries a five-year maturity and is backed by a first-priority security interest in 100% of the project’s equity. The financing model provides downside protection while preserving the option for Energea to transition into majority ownership as the project advances.
The Iron Spur Solar Project has already secured several key development milestones, including site control, interconnection applications, and an exclusivity agreement with an investment-grade corporate buyer for a long-term power purchase agreement.
Located in West Texas, one of the most active utility-scale solar markets in the U.S., the Iron Spur facility will feature ground-mounted, single-axis tracking technology. Once operational, the project is expected to generate approximately 317 gigawatt-hours of electricity annually.
The site benefits from a 35-year land lease and a streamlined interconnection strategy designed to avoid costly substation upgrades, reducing both risk and capital expenditure.
Additionally, the project qualifies for the 30% federal Investment Tax Credit and may benefit from further incentives tied to domestic content provisions. Its engineering, procurement and construction strategy aligns with ERCOT utility-scale benchmarks, reinforcing its viability in a competitive energy market.
Iron Spur is being developed by Levona Renewables, a U.S.-based solar developer, with Energea and Levona exploring further collaboration opportunities on future projects across the region.
Energea, founded in 2020, has raised more than $450 million across its global solar investment portfolios and reports a 12% realized internal rate of return for investors. The company continues to focus on combining financial performance with environmental and social impact through renewable energy development.
Originally reported by Energea in Business Wire.
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