Cypress Creek's $4.2 Billion in Solar Projects Reflects Growing Industry Backlog

Researched by Industrial Info Resources (Sugar Land, Texas)--Cypress Creek Renewables LLC (Santa Monica, California), one of the largest utility-scale solar companies in the U.S., is looking at an unpredictable future for its market. The U.S. solar industry now has the largest pipeline of utility-scale projects in history, according to a report last year from Wood Mackenzie (Boston, Massachusetts) and the Solar Energy Industries Association (SEIA), with a contracted pipeline of 37.9 gigawatts (GW). But a dip in federal and state support, such as tax breaks and incentives, could hamper the outlook. Industrial Info is tracking more than $4.2 billion in active projects involving Cypress Creek.

Click on the image at right for a graph detailing the top 10 U.S. states for Cypress Creek projects.

Since it was founded in 2014, Cypress Creek has been building up a strong portfolio of projects outside its home state of North Carolina. Last year, the company announced it would no longer be handling its own engineering, procurement and construction (EPC) work, as third-party EPC contractors would make more sense for a company with a growing geographic presence. The PJM Interconnection and Electric Reliability Council of Texas (ERCOT) markets are among Cypress Creek's top destinations for future projects.

"Going forward, we will rely on providers who have expertise in the local markets or have the footprint to effectively deliver projects nationwide," said Sarah Slusser, the chief executive officer of Cypress Creek, in a press release announcing the new strategy. "The model allows Cypress to focus on the core business of developing, financing and operating solar and storage."

Even with its recent growth, more than 60% of Cypress Creek's projected investment is attributed to projects in the U.S. Mid-Atlantic states, particularly North Carolina and Virginia. Among the projects in the region that are nearing and under construction are the estimated $150 million Water Strider Solar Plant in Nathalie, Virginia, which would generate 80 megawatts (MW); the $141.8 million Crooked Run Solar Plant in Willard, North Carolina, which would generate 105 MW; and the estimated $34 million McCraw Solar Plant in Mooresboro, North Carolina, which would generate 20 MW.

Cypress Creek owns the Water Strider and McCraw projects, but the Crooked Run project is one of the last for which it is only performing EPC services. For more information, see Industrial Info's reports on the Water Strider, Crooked Run and McCraw projects.

Cypress Creek also is proposing a series of smaller-scale solar photovoltaic (PV) projects across North Carolina, three of which would not begin construction until 2021 at the earliest:

• the estimated $11 million Friendly Solar Farm in Denton, which would generate 7 MW; see project report
• the estimated $10 million Coogee Solar Farm in Gransbury, which would generate 5 MW; see project report
• the estimated $10 million Choco Solar Farm in Chocowinity, which would generate 5 MW; see project report

Outside the Mid-Atlantic, Cypress Creek has proposed a pair of solar farms near heavily populated areas. The estimated $110 million Wagyu Solar Plant in Damon, Texas, would generate about 120 MW from 1.38 million PV modules, while the estimated $8.9 million Crete Solar Plant in Crete, Illinois, would generate about 5 MW. The locations are within an hour's drive to Houston and Chicago, respectively. For more information, see Industrial info's reports on the Wagyu and Crete projects.

On the West Coast, Cypress Creek is proposing the estimated $40 million Ochoco Solar Farm in Prineville, Oregon, near the Ochoco National Forest. The 20-MW facility would be accommodated by the $9 million Juniper Substation nearby. Prineville is in Crook County, which already boasts of Oregon's largest solar plant and five other projects that have received land use approval locally, according to the Portland Tribune. For more information, see Industrial Info's project reports on the power plant and substation.

Despite the strong showing for planned projects among utility-scale solar developers, the domestic market is facing some headwinds in public policy. The U.S. Congress did not extend the solar Investment Tax Credit (ITC) last year, so the benefit will drop from 30% to 26% this year, 22% in 2021, and then decline indefinitely to 10%.

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