Through a $58 million partnership flip, Foss & Company has provided tax equity for a utility-scale BESS that GridStor has developed in Hidalgo County, Texas. The transaction, which was announced on 7 October 2026, generates Section 48 Investment Tax Credits, and the battery is on schedule to be placed in service in the same month.
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GridStor, a US-based company that develops and operates utility-scale battery storage, has closed a $58 million tax equity financing with Foss & Company for a BESS in Hidalgo County, Texas. The closing was announced by Foss on 7 October 2026, and the battery is on schedule to be placed in service in the same month.
Under the terms of the deal, the financing has been arranged as a partnership flip, with Foss & Company acting as the tax equity investor. The structure generates Section 48 Investment Tax Credits for the project. It is, moreover, the second transaction that the two companies have completed together, and it adds another utility-scale storage asset to the renewable energy portfolio that Foss has been building.
For Foss, the investment rests on a change in the way that the grid is being run. “This transaction reflects the strength of our partnership with GridStor and our continued conviction in utility-scale battery storage as an asset class,” said Bryen Alperin, Partner and Managing Director at Foss & Company. He also observed that grid operators were increasingly relying on storage to balance supply and demand, and he said that his firm looked forward to growing its pipeline with GridStor in the years ahead.
GridStor, for its part, has presented the deal as a sign that the sector is maturing. Spencer Mash, SVP of Finance and Head of Capital Markets at GridStor, said that the company was pleased to have concluded the financing with Foss, and he thanked the investor for its support of the BESS asset class. In his view, the transaction reflects “the growing confidence of financing partners in the role that battery energy storage can play in supporting grid reliability and flexibility where it is needed most.”
Foss & Company, which was founded in 1983, is a national tax equity investor and fund sponsor. Since its inception, the firm has deployed more than $11 billion on behalf of insurance, banking and other large corporate clients, and that capital has been directed into historic rehabilitation projects, renewable energy and advanced energy production facilities.
GridStor has built its business around the reliability of the American power system. The company develops, acquires, builds and operates standalone battery projects, which are located primarily across North America, and it stores electricity so that the power can be delivered when and where it is most needed.