US Bancorp and ORIX USA Corp. have announced the closing of US Bancorp’s first renewable energy conglomerate, which is expected to help SolarCity install around 2,500 PV systems at homes and businesses in nine states.
US Bancorp conducted the deal, which will help finance the installation of PV arrays in Arizona, California, Colorado, Connecticut, Hawaii, Massachusetts, Maryland, New Jersey and New York. The syndication is expected to finance over US$100 million in projects.
The 2,500 installations installed by SolarCity are expected to produce enough clean energy in their first year of operation to equal the effect of removing 4,250 cars from the road each year.
Zack Boyers, chairman and CEO of US Bancorp Community Development Corporation, said: “This is a new phase of business development for US Bancorp. Entering into our first renewable energy syndication agreement allows us to expand SolarCity’s ability to install more energy-saving solar arrays on homes and businesses across the nation that will, as a result, produce more jobs and assist in the country’s economic recovery.
The syndication transaction stands as ORIX’s first foray into the renewable-energy tax credit financing market.
Andrew Garvey, managing director and head of ORIX Municipal Finance, added: “We welcome the opportunity to help consumers and businesses reduce greenhouse gas emissions by becoming solar energy users. ORIX is a unique platform, and this transaction shows how we can make our capital available in innovative ways to achieve the financing needs of our clients.”
The new projects will also create more than 350 construction and installation jobs, as well as US$76 million in salaries, equipment purchases, construction materials and secondary spending.