San Diego solar PV system designer, installer and project developer Borrego Solar today announced the closing of a new $47-million fund with US Bank and East West Bank, the purpose of which is to finance solar energy projects for corporate, education and municipal customers.
Among the projects the new fund will finance is 6 MW of solar energy systems in California that includes ten projects for three school districts. Also included are two Massachusetts solar power installations, one of which — of 4.7 MW — is expected to be the largest of its kind in the state. Taken together Borrego’s solar energy projects are expected to create some 400 local jobs while generating clean, long-term renewable energy for nearly 2,000 homes.
The new fund builds on previous success the two banks have had with Borrego and financing its solar energy projects. The two banks partnered with Borrego last June to finance nearly 9 MW of solar projects for customers, including the city of Easthampton, Mass., the Archdiocese of Newark, NJ, Edwards Air Force Base and Santa Clara County, Calif.
Borrego’s Integrated Solar Power Purchase Agreement
“Borrego Solar has consistently identified, developed and executed some of the strongest and most financially-viable solar energy projects, and this latest round is no exception,” commented Darren Van’t Hof, U.S. Bank director of renewable energy investments.
“Despite recent skepticism around the expiration of the [US Treasury] 1603 Grant, we remain confident in the importance and long-term viability of renewable energy, and we’re excited to move these projects forward.”
“We’re excited about this investment, as it will allow us to deliver on more projects, help organizations go solar with zero up-front costs, and create new jobs,” added Borrego Solar CEO Mike Hall. “As we continue to build our portfolio of solar projects across North America, we are assisting organizations in finding innovative ways to implement energy savings programs that allow them to focus their investment dollars on other core operating expenditures. We are thrilled to have passionate and committed partners like U.S. Bank and East West Bank. Their support has been invaluable.”
Borrego offers customers its own power purchase agreement (PPA), which entails it building, operating and maintaining solar energy systems for customers, then selling the electricity back at a reduced, fixed rate. This generates immediate savings and positive cash flows for cash-strapped customers unable to meet up-front capital costs, along with enabling them to benefit from a long-term supply of clean, renewable electricity.
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