Borrego Solar Systems has completed its second fund with U.S Bank and East West Bank, which have contributed an estimated US$36 million for the financing of new solar energy projects. The newly funded solar projects include a 1.2MW system at the Madera Community Hospital and a 1.8MW system at the San Diego County Water Authority.
Borrego previously initiated its relationship with U.S Bank and East West Bank this past July with its first solar fund of US$20 million, which went towards the financing of the San Diego Community College District’s solar installation (SDCCD). The SDCCD project was the first to be financed with Borrego’s internal power purchase agreement (PPA).
“The introduction of our PPA provided a cost-effective opportunity for our customers to lower their utility rates through solar energy,” said Mike Hall, CEO of Borrego Solar. “The initial investment from U.S. Bank and East West Bank kick-started our PPA, and we are excited to further expand our offering with the second fund and build on our reputation as the ‘one stop shop’ for solar design, construction, maintenance and financing.”
The PPA that Borrego offers, allows the project hosts to benefit from solar energy while not sustaining any upfront capital costs or operational expenses. The terms of the PPA permits Borrego Solar to build, operate and maintain the solar systems and then sell the energy produced at competitive rates in comparison to traditional utility companies.