Borrego Solar Systems, a developer and installer of grid-connected PV systems, has acquired a portfolio of solar power systems in California which have a combined capacity of 8MW.
The portfolio includes two 1.5MW projects which benefit from Southern California Edison’s (SCE’s) California Renewable Energy Small Tariff programme. They represent Borrego’s first projects under SCE's feed-in tariff programme which provides standardised fixed price energy payments to qualifying renewable energy generators that are 1.5 MW or smaller. Qualifying projects can sell the renewable energy they generate at a set price to SCE for up to 20 years.
The remaining 5MW is accounted for by projects which benefit from power purchase agreements with various school districts.
Borrego has acquired these projects and completed their development, providing all the necessary project financing, engineering, procurement and construction of the solar facilities.
The two 1.5MW facilities are wholesale distributed generation (WDG) projects. WDG projects are small, wholesale generators that sell energy directly to the utility, instead of delivering energy to the user to credit a specific utility bill.
According to the company, WDG projects have gained in popularity in the past few years and play an important role in advancing the solar industry by opening the market up to properties that are not necessarily owner-occupied. They also provide real estate investment trusts and property owners with a new avenue for going solar that wasn't previously available.
“Borrego Solar is very active in the project acquisition space,” said Brian von Moos, director of utility project development at Borrego Solar. “Our ability to deploy development capital and long-term project financing to later-stage developments helps customers and developers bring their projects across the finish line. For most developers, financing a one-off project is a heavy lift, but our experience puts us in a position to successfully develop projects by aggregating and financing portfolios.”