Interest Expense, Net
Interest expense, net for the years ended December 31, 2014 and 2013 were as follows:
Year ended December 31,
Total interest expense, net
Interest expense, net, increased by $78.1 million during the year ended December 31, 2014, compared to the same period in 2013, primarily due to increased indebtedness related to non-recourse construction financings, non-recourse financing lease arrangements and borrowings under the Term Loan. In addition, the amortization of fees included in interest expense increased $25.6 million primarily due to deferred fees associated with the bridge facility, which was repaid upon completion of the IPO. During the period from July 24, 2014 to December 31, 2014, the Company received an equity contribution of $5.4 million pursuant to the Interest Payment Agreement. No amounts were received during the year ended December 31, 2013 pursuant to the Interest Payment Agreement.
Gain on Extinguishment of Debt, net
We incurred a net gain on the extinguishment of debt of $7.6 million for the year ended December 31, 2014 due primarily to the termination of our financing lease obligations upon acquiring the lessor interest in the SunE Solar Fund X portfolio of solar generation facilities. The net gain on extinguishment of debt for the year ended December 31, 2014 related to the following renewable energy facility portfolios:
Year Ended December 31, 2014
U.S. Projects 2009-2013
SunE Solar Fund X
Total net gain on extinguishment of debt
There was no gain or loss on the extinguishment of debt for the year ended December 31, 2013.
Loss on Foreign Currency Exchange, net
We incurred a net loss on foreign currency exchange of $14.0 million for the year ended December 31, 2014, primarily due to an unrealized loss on the remeasurement of intercompany loans, which are primarily denominated in British pounds, due to the strengthening of the U.S. dollar. These remeasurement losses were offset by other inconsequential foreign currency fluctuations. We incurred a net gain on foreign currency exchange of $0.8 million for the year ended December 31, 2013, primarily due to transactional gains primarily related to the construction of our solar generation facility in Chile.
Income Tax Provision
Income tax benefit was $4.7 million for the year ended December 31, 2014, compared to an income tax benefit of $0.1 million during the same period in 2013. For the year ended December 31, 2014, the overall effective tax rate was different than the statutory rate of 35% primarily due to the recognition of a valuation allowance on the tax benefit attributed to the Company post IPO. The tax benefit for losses realized before the IPO on July 23, 2014 were recognized primarily because of existing deferred tax liabilities.
Pre-acquisition Net Loss of Renewable Energy Facilities Acquired from SunEdison
Pre-acquisition net loss of renewable energy facilities acquired from SunEdison was $1.5 million for the year ended