The Puerto Rico Solargation Portfolio is a $1.6 billion agrivoltaic solar-plus-storage program: 583 MW of solar PV and 175 MW / 2.62 GWh of battery storage across multiple island sites, delivering power to anchor customers under 20-year contracted agreements through Puerto Rico’s regulated energy wheeling program.
Built on the patented Solargation™ platform — elevated solar arrays integrated with fixed-set irrigation and designated as farm equipment by the USDA and USPTO — the portfolio keeps farmland in production while bypassing the permitting barriers that stall conventional solar. Executed 20-year agreements are in place with T-Mobile, Home Depot, Ardent Mills, and PRASA, Puerto Rico’s island-wide water utility.
In a market where retail electricity runs $0.25–$0.30/kWh on imported fuel, the portfolio delivers contracted power at a blended effective rate of ~$0.14/kWh — cheaper for the customer, fixed for the investor, and hedged against oil-driven volatility.
EnergySource1’s role: ES1 is providing approximately $300 million of debt capital to the portfolio through senior-secured green bonds — extending the asset-backed, contracted-cash-flow discipline of its green infrastructure program to Puerto Rico.
Request Investment Materials →Puerto Rico’s wheeling program lets private generators deliver power to customers over the LUMA grid — replacing the volatile, oil-linked fuel charges on the customer’s bill with fixed, discounted contracted power.
Generation is wheeled across the LUMA grid to each customer. The oil-indexed FCA & PPCA charges on the customer’s utility bill are zeroed out, and the portfolio bills only for that energy — at a contracted discount to the charges it replaces.
Customers keep their utility service and simply pay less — contracted discounts of 10–15% against FCA & PPCA charges, with modeled total bill savings of roughly 38% in representative cases, and full insulation from oil price spikes.
2.62 GWh of co-sited battery storage shifts solar generation into afternoon and evening demand, managing the wheeling program’s imbalance charges and capturing peak marginal value of ~$0.20–$0.35/kWh for over-production at peak.
Solargation elevates solar arrays above working farmland and integrates fixed-set irrigation into the structure itself — so energy and agriculture share the same acre.
Designated plant-husbandry equipment (fixed-set irrigation) by the USPTO and USDA NRCS — protected under Right to Farm Acts across all 50 states and U.S. territories, with land-use precedent already set in Puerto Rico.
The farm-equipment designation unlocks construction-permit waivers and shields projects from local land-use ordinance interference — removing the barriers that displace or delay conventional solar development.
Agriculture continues beneath the arrays with integrated irrigation and precision-farming capability — a 60–70% increase in land-use productivity, plus access to agricultural incentives unavailable to solar-only projects.
Executed 20-year agreements with a diversified base of investment-grade corporates and essential-service infrastructure.
| Customer | Credit Profile | Contract |
|---|---|---|
| Home Depot | Investment grade (A) · ~$165B annual revenue | 20 years · 100% of consumption · 12.5% discount vs FCA & PPCA |
| T-Mobile | Investment grade (BBB+/Baa1) · ~$18B annual free cash flow | 20 years · 100% of consumption · 15% discount vs FCA & PPCA |
| Ardent Mills | Major North American food platform · $4B+ revenue | 20 years · 100% of consumption · 10% discount vs FCA & PPCA |
| PRASA | Island-wide water & wastewater utility · essential service | 20 years · 130M kWh/yr · fixed $125/MWh with 2% escalator; expansion at higher fixed rates |
EnergySource1 is providing approximately $300 million of the portfolio’s debt capital through green bonds — secured against contracted revenues and real renewable assets, with proceeds dedicated exclusively to eligible green infrastructure.
Bond proceeds fund the construction of the solar, storage, and agrivoltaic infrastructure — deployed only against executed 20-year offtake agreements, never speculative development.
Debt service is supported by 20-year contracted revenues from investment-grade and essential-service offtakers, with modeled debt-service coverage of 2.2x–3.9x and a capital stack that is ~69% tax-advantaged equity.
The portfolio directly advances Puerto Rico’s statutory 100% renewable mandate, displaces oil-fired marginal generation, and preserves working farmland through dual-use agrivoltaic design — energy transition and agricultural resilience on the same acre.
Blended effective PPA of ~$0.1411/kWh produces approximately $106 million of Year-1 revenue and ~$59 million of EBITDA, growing with contractual escalation over the 20-year term.
| Phase | Solar PV | Storage | Capital |
|---|---|---|---|
| Phase 1 | 228 MW | 68 MW / 1.02 GWh | $0.66B |
| Phase 2 | 355 MW | 107 MW / 1.60 GWh | $0.97B |
| Total Portfolio | 583 MW | 175 MW / 2.62 GWh | $1.6B |
Phase 1 effective PPA $0.1316/kWh · Phase 2 $0.1472/kWh · blended $0.1411/kWh.
| Capital Source | Amount | % |
|---|---|---|
| Federal ITC tax bridge | $582M | 30% |
| Puerto Rico incentive bridge | $484M | 25% |
| Depreciation tax equity | $262M | 14% |
| Construction loan | $267M | 14% |
| Sponsor equity | $52M | 3% |
| Non-cash development fee | $294M | 15% |
| Total Sources | $1,940M | 100% |
~69% of capital is sourced from tax-advantaged equity driven by the 40% federal ITC (30% base + 10% domestic content) and Puerto Rico’s incentive stack.
20-year agreements executed with T-Mobile, Home Depot, Ardent Mills, and PRASA — the revenue backbone was signed before construction capital is deployed.
On-site physical work certified across the Humacao, Añasco, Cabo Rojo, and Carolina sites (July 2026), with steel delivered — locking federal ITC eligibility under safe-harbor rules.
Construction-permit waivers secured through the Solargation farm-equipment designation, with site control, surveys, and permitting documentation in place across the portfolio sites.
Final project structuring, engineering, environmental work, LUMA interconnection agreements, and domestic-content supply chain lock-in for ITC bonus qualification.
Binding equipment orders, then parallel modular construction across sites: Solargation structures, modules, trackers, inverters, battery systems, and interconnection infrastructure.
System testing, energization, grid synchronization, and commercial operation — transitioning to long-term operations under the 20-year contracted agreements.
Complete bond terms, portfolio details, financial projections, capital structure, contracted agreements, and risk factors are set forth in the confidential bond memorandum, available to verified qualified investors upon request.
Request Bond Memorandum →