Sprouts Farmers Market Signs Tax Credit Investment Deal to Advance Energy Security
Sprouts Farmers Market Signs Tax Credit Investment Deal to Advance Energy Security
Rhea-AI Impact
(Moderate)
Rhea-AI Sentiment
(Very Positive)
Tags
Key Terms
tax credit transferfinancial
A tax credit transfer is a legal sale or assignment of a tax credit from the original recipient to another party who can use that credit to reduce their own tax bill. For investors, it matters because it converts a future tax-saving into immediate cash or a tradable asset, improving project financing, lowering risk and changing expected returns—think of selling a valuable coupon before you use it so someone else can get the discount now.
battery energy storage system (bess)technical
A battery energy storage system (BESS) is a large-scale setup that stores electricity in rechargeable batteries and releases it when needed, like a giant rechargeable battery for the power grid. It matters to investors because it helps smooth out supply and demand, capture surplus renewable power, provide backup and short-term grid services that can earn recurring revenue, and can boost the value of generation and transmission assets as demand for flexible energy grows.
besstechnical
BESS stands for Battery Energy Storage System, a technology that stores electricity for later use. Think of it as a large rechargeable battery that can hold excess power generated during times of low demand and release it when usage is high, helping balance supply and demand. This is important for investors because it supports the stability of energy grids, enables the integration of renewable sources, and can create new opportunities for profitability in the energy market.
mwhtechnical
mwh (megawatt-hour) is a standard unit for measuring electricity: one megawatt of power supplied for one hour. Think of it like a fuel tank for electricity — it tells you how much usable energy was produced, consumed or stored, much like gallons in a car’s tank. Investors track MWh to compare generation output, storage capacity and sales volumes, because it directly affects revenue, contracts and the value of power-related assets.
co₂technical
CO₂ (carbon dioxide) is a colorless gas produced by burning fuels, industrial processes and biological respiration; it acts like a blanket that traps heat in the atmosphere. Investors care because levels of CO₂ drive climate-related rules, taxes and consumer expectations that can raise costs, change demand and alter the value of assets—similar to how a rising thermostat can force someone to change their heating and insulation choices.
Agreement advances clean energy development, strengthens American jobs, and drives next-generation technology leadership
Project expected to power approximately 19,000 homes annually and avoid 145,000 metric tons of CO₂ emissions each year
PHOENIX--(BUSINESS WIRE)--
Schneider Electric, a global energy technology leader, and Sprouts Farmers Market, Inc. (Nasdaq: SFM), today announced a landmark Tax Credit Transfer (“TCT”) in collaboration with U.S. Bank, and Longroad Energy. This agreement advances the Sun Pond Solar + Battery Energy Storage System (BESS) project in Maricopa County, Ariz. – home to Sprouts’ headquarters – and represents a significant step toward driving positive impact in the communities where Sprouts operates.
Schneider Electric Advisory Services served as a strategic advisor to Sprouts, streamlining the renewable energy investment process. The project delivers energy, improves air quality, and enhances local grid resilience through battery storage. It will also help strengthen the regional tax base, bringing long-term economic and environmental benefits to Arizona communities.
Sprouts’ investment has helped bring online a 111 MWdc solar and 85 MWac / 340 MWh storage project, expected to power approximately 19,000 homes annually and avoid 145,000 metric tons of CO₂ emissions each year. Over its lifetime, Sun Pond will contribute more than $30 million in revenue for Arizona schools and communities through long-term leases and tax remittances. The project also leverages American-made technology and workforce development, employing more than 200 workers during construction, including registered apprentices.
“This work is anchored in Sprouts’ purpose of helping people live and eat better,” said Brandon Lombardi, Chief Legal and Sustainability Officer of Sprouts Farmers Market. “By supporting new renewable energy projects, we’re taking tangible steps to care for our planet, people, and local communities.”
The Sun Pond project is part of the Longroad Sun Streams Complex and features an energy storage platform provided by Fluence, a U.S.-based company, with U.S.-made inverters integrated into the system. Construction is complete, and commercial operations have commenced.
“This deal demonstrates how companies like Sprouts can lead the way in responsible renewables,” said John Powers, Vice President of Strategic Renewables at Schneider Electric. “Through Schneider Electric Advisory Services, we help clients navigate complex negotiations and deliver solutions that align with their climate goals.”
“U.S. Bank is grateful for SE Advisory Services collaboration and Sprouts’ trust in us to close this investment that meets their financial and sustainability objectives while bringing additional capital into the renewable energy sector,” said Timmi Kloster, Senior Vice President, Tax Credit Syndications at U.S. Bancorp Impact Finance, the community development and environmental finance division of U.S. Bank. “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.”
About Schneider Electric
Schneider Electric is a global energy technology leader, driving efficiency and sustainability by electrifying, automating, and digitalizing industries, businesses, and homes. Its technologies enable buildings, data centers, factories, infrastructure, and grids to operate as open, interconnected ecosystems, enhancing performance, resilience, and sustainability. The portfolio includes intelligent devices, software-defined architectures, AI-powered systems, digital services, and expert advisory. With 160,000 employees and 1 million partners in over 100 countries, Schneider Electric is consistently ranked among the world’s most sustainable companies.
Schneider Electric’s Tax Credit Advisory Services team has facilitated over $2 billion in tax credit transfers for our corporate clients across a range of clean energy technologies and tax credit types. We continue to help clients innovate and achieve meaningful, sustainable impact. To explore how tax credits can drive long term business savings, contact: taxcreditinvestment@se.com
True to its farm-stand heritage, Sprouts offers a unique grocery experience featuring an open layout with fresh produce at the heart of the store. Sprouts inspires wellness naturally with a carefully curated assortment of better-for-you products paired with purpose-driven people. The healthy grocer continues to bring the latest in wholesome, innovative products made with lifestyle-friendly ingredients such as organic, plant-based and gluten-free. Headquartered in Phoenix, and one of the largest and fastest growing specialty retailers of fresh, natural and organic food in the United States, Sprouts employs approximately 36,000 team members and operates more than 480 stores in 25 states nationwide. To learn more about Sprouts, and the good it brings communities, visit sprouts.com/about/.
