Sprouts Farmers Market has signed a tax credit transfer agreement with Schneider Electric, U.S. Bank and Longroad Energy to help finance the Sun Pond Solar + Battery Energy Storage System project in Maricopa County, Arizona, where the grocer is headquartered.
The 111 MWdc solar and 85 MWac / 340 MWh storage project is operational. It is expected to power about 19,000 homes annually and avoid 145,000 metric tons of CO₂ emissions each year.
What the deal does
Under a tax credit transfer, Sprouts purchases federal clean energy tax credits generated by the Sun Pond project rather than developing a project itself.
Schneider Electric’s SE Advisory Services unit advised Sprouts on the transaction, with U.S. Bancorp Impact Finance serving as the syndication partner connecting the grocer with Longroad Energy’s project.
The Sun Pond project is part of Longroad’s Sun Streams Complex and features battery storage technology from Fluence, which makes inverters in the U.S.
Construction employed more than 200 workers, including registered apprentices. Over its lifetime, the project is projected to generate more than $30 million for Arizona schools and communities through leases and tax remittances.
Sustainability case
Brandon Lombardi, chief legal and sustainability officer at Sprouts, connected the investment to the company’s broader purpose.
“This work is anchored in Sprouts’ purpose of helping people live and eat better,” Lombardi said. “By supporting new renewable energy projects, we’re taking tangible steps to care for our planet, people, and local communities.”
John Powers, VP of strategic renewables at Schneider Electric, said the deal illustrates how retailers can access renewable investment without directly developing projects.
“Through SE Advisory Services, we help clients navigate complex negotiations and deliver solutions that align with their climate goals,” Powers said.
Timmi Kloster, SVP of tax credit syndications at U.S. Bancorp Impact Finance, said the structure was tailored to deliver financial and sustainability outcomes.
“By pairing Sprouts with Longroad Energy’s Sun Pond solar and storage projects, SE Advisory Services and U.S. Bank’s syndications teams delivered a tailored solution that provides predictable tax benefits and helps expand clean energy generation, storage and local jobs in Arizona,” Kloster said.
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