American renewable energy provider Nexamp has raised $520m in a funding round to advance its clean energy initiatives across the US.

Manulife Investment Management spearheaded the financing round for the community solar developer and owner, joined by current investors Diamond Generating and Generate Capital. Nexamp enlisted BofA Securities as its sole placement agent for the fundraise.

Manulife Investment Management managing director Pradeep Killamsetty said: “We believe in community solar and Nexamp has built an exceptional platform to meet the moment.

“We are proud to support the Nexamp team in their efforts to further expand their community reach and execute on their growth plans for a cleaner future.”

The influx of capital will enable Nexamp to speed up the implementation of its project pipeline across the US. It will also help the firm enhance its presence and collaborations in both established and emerging markets and support the ongoing development of its range of generation and consumer-focused solutions.

In January, Nexamp revealed its decision to establish a second national headquarters in Chicago and announced plans to invest over $2bn in local renewable energy infrastructure in Illinois.

Furthermore, in 2023, Nexamp initiated a collaboration with North American solar manufacturer Heliene, securing access to 1.5GW of domestically produced modules.

The modules will be deployed across numerous community solar projects spanning the nation. Presently, Nexamp serves nearly 80,000 customers and manages a portfolio exceeding 1.5GW of generating capacity, inclusive of projects under construction, with the potential to power over 300,000 households.

The company is actively developing several additional gigawatts of project capacity across more than 20 markets, with the combined potential to provide power to over one million customers in the years to come.

Nexamp CEO Zaid Ashai said: “This landmark financing comes at a pivotal moment in the evolution of America`s energy economy, and underscores the indispensable role of community solar in democratising access to clean, affordable energy solutions for every American.

“This unprecedented investment reflects swelling confidence in the ability of independent renewable energy providers to reimagine outmoded infrastructure and reshape our grid. Nexamp is committed to deep collaboration with communities across the nation in building a more sustainable future for us all.”

In May 2023, the clean energy company secured over $400m in tax equity and debt commitments. US Bancorp Impact Finance led the tax equity portion and Mitsubishi UFJ Finance Group (MUFG) while spearheaded the debt portion.