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solarbank bess

SolarBank Corporation, a pioneer in clean and renewable energy in Canada and the U.S., is entering the battery energy storage market by securing $3 million in project financing. The loan, provided by RE Royalties Ltd., marks a significant milestone in SolarBank’s growth strategy, which includes battery energy storage system (BESS) projects.

A Milestone for SolarBank’s Battery Energy Storage Goals

The company aims to capitalize on the market forecast by Fortune Business Insights that predicts project growth at a 16.3% annual rate and reaching $31.2 billion by 2029.

SolarBank is developing three 4.99 MW Battery Energy Storage System (BESS) projects in Ontario. These projects are owned by 1000234763 Ontario Inc. and 1000234813 Ontario Inc. (“ProjectCos”). The loan agreement is under Solar High Yield Projects #1 Ltd. (“the Borrower”).

The company got involved in the projects through its $45 million acquisition of Solar Flow-Through Funds Ltd., which was completed in July 2024. This acquisition expanded the company’s renewable energy assets and opportunities in energy storage. Subsequently, the newly secured financing will help SolarBank leverage this acquisition and refresh its storage project plans. This is also one way to diversify its portfolio for renewable energy solutions.

Matthew Wayrynen, Chair of SolarBank commented,

“We are thrilled to continue our partnership with RE Royalties to secure this financing for our BESS projects in Ontario. Having worked with RE Royalties on previous projects, we value their expertise and shared commitment to sustainability. This financing is a key step toward a cleaner future and the further diversification of SolarBank’s growing project portfolio.”

                           Mergers & Acquisitions Opportunistic ExpansionSolarBank solar energy Source: SolarBank

Unlocking the BES Project Loan Agreement

RE Royalties Ltd. will issue the entire $3 million loan to SolarBank’s in a single installment and the company has to repay by November 26, 2025. The loan carries an annual interest rate of 11%. To secure the financing, SolarBank agreed to a 0.40% royalty on the gross revenue from the projects. Notably, if they can repay the within six months, the royalty will drop to 0.25%.

Bernard Tan, CEO of RE Royalties, stated

 “We are excited to be working with the SolarBank management team again on this transaction. The SolarBank team has a long proven track record in developing, building and operating renewable energy assets in North America. These BESS projects will help the province of Ontario support renewable electricity generation, build resiliency in the grid, and help lower emissions compared to conventional sources.”

The press release further revealed some critical details of the loan, illustrated below:

  1. The loan is backed by a first-ranking security interest on all assets of the borrower, excluding shares in the ProjectCos.
  2. The borrower, a fully-owned subsidiary of SolarBank, holds a 50% indirect interest in the ProjectCos. The remaining 50% is owned by a partnership with First Nations communities in Ontario.

This financing will cover development and construction costs for the projects. Additionally, SolarBank is also working on securing a larger financing package to fully fund the construction of their projects.

                                              SolarBank’s AchievementsSolarBank PortfolioSource: SolarBank

Factors Driving Market Growth

Although Asia Pacific is the key player in the BESS market, U.S., the market is also booming. One main reason is the adoption of renewable energy sources like solar and wind. Fortune Business Insights says:

  • The global market size was USD 18.20 billion in 2023 and is projected to reach USD 114.05 billion by 2032. Essentially, the U.S. battery energy storage market is projected to reach $31.36 billion in the same forecast period.

battery energy storage system US

Efforts to improve grid stability and resilience through clean energy solutions will further fuel demand for battery energy storage systems (BESS). This includes merging lower carbon emissions options like BESS with renewable energy sources like solar and wind. Together they can become the prime alternatives to fossil fuels.

Additionally, a surge in investments and supportive government policies is driving significant growth in the industry. These factors are creating a strong foundation for the expansion of battery energy storage systems worldwide.

Another reason behind renewable energy companies turning to battery energy storage is the cost advantages. In today’s energy transition, solar and wind are abundant and often more affordable than coal and other fossil fuels. Additionally, the cost of solar and battery energy storage has dropped by 85% over the past decade, making these solutions even more feasible and demanding.

SolarBank noted,

  • The North American solar PV market was valued at US $25.02 billion in 2019 and is projected to reach US $120.74 billion by 2027; it is expected to grow at a CAGR of 21.7% from 2020 to 2027.

Assessing Potential Project Risks

While the BES project presents growth opportunities, it also has certain risks. Development depends on securing necessary permits and maintaining access to third-party financing. Construction risks and potential delays could also impact progress.

Additionally, changes in government policies and reductions in incentives for battery energy storage could make such projects less viable in the future. Despite these challenges, SolarBank is determined to advance its renewable energy goals.

SolarBank Corporation: Powering the Future with Solar Energy

SolarBank Corporation is a full-service solar energy developer driving innovation and sustainability across North America. With over 250 MW of development opportunities in New York and Maryland since 2017, the company is a leader in commercial, industrial, and community solar solutions in the U.S.

In Canada, the company made huge progress by participating in the Ontario Independent Electricity System Operator (IESO) Feed-in-Tariff (FIT) program under the Green Energy Act. Most importantly, their success came from small FIT solar projects, including rooftop and ground-mounted installations.

                                     Strong Visibility to Continued GrowthSolarBank solar energy Battery energy storageSource: SolarBank

Expanding Renewable Horizons

SolarBank is now part of IESO’s first Long-Term Request for Proposals (E-LT1 RFP and LT1 RFP). This initiative targets 4,000 MW of new, year-round dispatchable electricity capacity from cutting-edge technologies like BESS.

The company has already entered the electric vehicle (EV) charging market as a service provider to business and residential customers. Thus, with years of expertise, they have become a trusted partner for ESG-focused businesses, driving advancements in energy storage, EV charging, and solar solutions to support their Net-Zero goals.

                                     A Decade of Strong Revenue GrowthSolarBank solar energy battery energy storageSource: SolarBank

In conclusion, the financial backup and a clear growth trajectory SolarBank can make a remarkable impact on the battery energy storage sector.

The post SolarBank Charges Ahead with $3M Boost for Battery Energy Storage System Projects appeared first on Carbon Credits.

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The Strategic Case for Nature-Based Carbon Investments

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Nature-based carbon investments deserve consideration when they address a specific business dependency and produce outcomes you can measure. Imagine Moonbucks, a global coffee roaster planning next season’s espresso blend. It is considering natural Grade 4 coffee from Jimma, in southwestern Oromia, Ethiopia. Its sourcing decisions affect the roasting schedule and the cash tied up in coffee purchases. Moonbucks needs to understand which measures could protect that supply, what they would cost and how it would judge the results.

1. Define the sourcing problem before choosing a project

Moonbucks needs a dependable component for its espresso blend. Its procurement team wants continuity of volume and an agreed cup profile. Replacing a shipment at short notice could require new sample approval and changes to the blend, and given the schedules for cultivation, processing, and freight delivery, is practically impossible. Moonbucks needs to get this right, and its initial concern is inconsistent deliveries. It commissions an assessment of the supplying farms and post-harvest chain. The questions cover land condition, harvest availability and whether drying or storage problems are affecting saleable lots.

This distinction changes the investment brief. A tree-planting proposal cannot be assumed to fix drying problems. Better storage cannot restore eroded land. The team must establish which problem exists before selecting the response.

CCC’s guide to finding nature-based solutions in your supply chain explains where to look. Here, the next task is to turn a broad concern into a testable proposal.

2. Develop nature-based carbon investments around the actual supply chain

The assessment would trace Moonbucks’ purchases back through the exporter and supplying producer groups. Which farms supply the contracted lots? Who controls land-management decisions? How long does the buyer expect to maintain the purchasing relationship?

Furthermore, Jimma natural Grade 4 cannot be treated as interchangeable with every Ethiopian coffee. Moonbucks would need to test any substitute against its own blend and quality requirements.

Suppose Moonbucks’ assessment identifies an opportunity to maintain shade trees and restore vegetation along exposed streambanks. The IPCC describes agroforestry as a way to store carbon in vegetation and soil, with potential benefits for erosion control and water quality.1 Moonbucks would need local advice on species, growing conditions and maintenance before deciding how these measures fit its sourcing plan.

The proposal now has a defined sourcing connection and a candidate intervention. The next steps are to test its effect on production, assess carbon eligibility and build the financial case.

3. Compare the proposal with other ways to protect supply

WBCSD’s Nature-based Solutions Blueprint recommends comparing nature-based options with other responses across their benefits and costs.2 For Moonbucks, that means evaluating the landscape proposal alongside drying improvements, storage controls and alternative sourcing arrangements.

The product’s natural-process designation matters. Moonbucks should examine the drying and dry-milling chain alongside land conditions. Its team would check storage practices, contamination risks and incoming-lot quality to see whether problems arise before or after the coffee leaves the farms.

The revised proposal might combine land stewardship with separate post-harvest controls. Each component needs its own purpose and budget. A sustainability label should not obscure which activity is expected to solve which problem.

The project develops as the evidence improves. Its scope should follow the diagnosis rather than preserve the first idea unchanged.

4. Establish what the carbon outcome could count toward

Moonbucks’ sustainability team now tests the proposed carbon case separately from the sourcing case. Is the objective a measurable change in Moonbucks’ value-chain emissions, verified credits for separate voluntary use, or distinct outcomes under carefully defined arrangements?

Scope 3 covers value-chain emissions. A purchasing relationship alone does not prove that a farm intervention can be included in Moonbucks’ inventory. The team needs an applicable accounting method, defensible boundaries and evidence supporting attribution.

SBTi’s FLAG Guidance (forest, land and agriculture), version 1.2, says purchased credits used as offsets cannot meet near-term FLAG or energy and industry targets. Eligible land-based removals are subject to accounting requirements.3 Moonbucks needs to test its proposal against those rules before including an outcome in its targets.

For Moonbucks’ Jimma proposal, maintaining existing trees and establishing new vegetation could involve different carbon questions. Specialists must examine the baseline and additionality, meaning what changes because the project proceeds. They must also assess measurement and the risk that stored carbon is lost. CCC’s MRV and additionality article introduces those tests.

Until that work is complete, Moonbucks should not budget an assumed Scope 3 reduction or credit-sale receipt. Direct emissions reductions remain the priority.

5. Build a financial case that survives weaker assumptions

Moonbucks’ finance team would now build a multi-year budget. UNEP’s State of Finance for Nature 2023 compares current finance with the investment needed to meet climate, biodiversity and land-restoration goals.4 The company would cost its proposed activities, farmer participation and ongoing monitoring. Verification, where required, is a separate expense. Maintenance and responsibility for replacing failed plantings must remain visible after the initial establishment budget ends.

Operational benefits need equally careful treatment. If fewer rejected lots reduce emergency purchasing, count that saving once. Do not add “supply resilience” as another financial benefit when it represents the same avoided cost.

Moonbucks should compare a base case with slower benefits, higher implementation costs and no carbon revenue. It should also distinguish production outcomes from quality and shipment outcomes. A single good harvest would not prove that the landscape intervention caused better delivery performance.

A project can remain worth funding even when its carbon case needs more work. That decision must rest on the operational evidence and the company’s objectives, without unsupported environmental claims.

6. Fund a pilot with a clear expansion decision

Moonbucks’ first approval would fund a bounded pilot, rather than commit the entire sourcing program. Before spending, Moonbucks would agree on participating farms, responsibilities and the evidence needed at review.

Its scorecard could track farmer participation, implementation costs and plant survival, alongside accepted coffee volumes and lot-quality results. Carbon measurements would follow the selected method. Farm-level traceability must connect the intervention to the actual sourcing relationship.

Suppose Moonbucks’ review later finds that storage changes explain most quality improvements, while the land measures need longer observation. Those findings would shape the next decision: expand the proven component, adjust the landscape work or pause further spending. They would not justify crediting all improvements to tree planting.

This gives nature-based carbon investments a practical place in a multi-year strategy. Funding increases as the evidence supports it, and the project can change direction before a larger commitment.

Discuss a sourcing opportunity with CCC

Carbon Credit Capital’s nature-based supply-chain investment service uses its Dual-Value Model to examine supply-chain economics alongside potential sustainability outcomes.

Schedule a consultation to discuss your sourcing exposure and the questions to resolve before allocating capital.

Sources

  1. Intergovernmental Panel on Climate Change (IPCC), Climate Change 2022: Mitigation of Climate Change, Chapter 7, Agriculture, Forestry and Other Land Uses, section 7.4.3.3 (Agroforestry).
  2. World Business Council for Sustainable Development (WBCSD), Nature-based Solutions Blueprint, 5 June 2024.
  3. Science Based Targets initiative (SBTi), Forest, Land and Agriculture Science-Based Target-Setting Guidance, version 1.2, March 2026, section 3.1.4, pp. 37–38.
  4. United Nations Environment Programme (UNEP), State of Finance for Nature 2023, 2023.
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Carbon Footprint

How to buy plastic credits, and what to check before you do

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A plastic credit funds the collection of plastic waste in places where no formal system exists to collect it. Each credit represents a measured, independently audited quantity of plastic taken out of the environment or returned to use, tracked on a public registry.

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Carbon Footprint

EU carbon credit claims after 27 September 2026

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EU carbon credit claims changed on 27 September 2026, the day the Directive (EU) 2024/825 began to apply across the European Union. The change is narrow. It changes how a company can talk about the credits it buys. A product can no longer be called neutral on the strength of compensation alone; however, every specific, evidenced statement about what a company measured, reduced, and funded stays fully available.

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