Borrego Solar Systems has received US$20 million in financing from the U.S. Bank and East West Bank for the realization of the company’s San Diego Community College District (SDCCD) solar project, which consists of a 2.8MW system in nine solar arrays over six locations at the SDCCD campuses. This is the first solar energy project to be financed under Borrego’s power purchase agreement (PPA).
“Financing a solar energy system using a PPA has emerged as an extremely appealing option for customers. We have seen a tremendous uptick in demand since introducing our PPA model, especially as expiring government grant programs and shrinking state rebates have stalled a number of projects,” said Mike Hall, CEO of Borrego Solar. “The investments from U.S. Bank and East West Bank for our project with the SDCCD validate the long-term viability of Borrego’s PPA offering and illustrate our value proposition as a ‘one stop shop’ for solar design, construction, maintenance and now financing. We look forward to working with them to develop our portfolio which currently consists of more than 50MW of projects.”
Most of the project cost will be funded through the financial commitments of East West Bank and U.S. Bank with the remainder to be supplied by the PPA fund launched in 2009. The 20-year agreement with SDCCD will see Borrego Solar build, operate and maintain the solar systems while selling the energy to the SDCCD at rates that are 18% less than the rates of San Diego Gas & Electric.