SAN DIEGO, July 31, 2012 /PRNewswire/ — Borrego Solar Systems, Inc., a leading designer, installer and financier of grid-tied solar photovoltaic (PV) systems, today announced that it closed a new $64.4 million fund to finance solar energy projects for corporate, education and municipal customers.
Both Minneapolis-based U.S. Bank and Washington, DC-based National Cooperative Bank (NCB) invested in the new fund, which is Borrego Solar’s largest since the company began offering its cost-effective Power Purchase Agreements (PPAs) in 2009 and brings its total amount of capital raised to over $225 million.
The fund will be used to build more than 18 megawatts (MW) of solar energy systems, totaling eight projects, including four municipal landfill installations and one school district.
“National Cooperative Bank is pleased to embark on this new partnership with Borrego Solar, as its solar PPA offering has been extremely successful to date,” said Matthew Wright, senior vice president at NCB. “As a mission-focused financial institution, we understand the importance of renewable energy and are motivated to work with Borrego Solar to fund projects that allow more organizations to take advantage of the benefits of solar energy.”
Through Borrego Solar’s PPA the company builds, operates and maintains solar power installations for customers, and then sells the energy back at a reduced and fixed rate, acting as a “One Stop Shop” for organizations looking to go solar without an upfront capital investment.
The program is attractive to a variety of federal, state and private organizations looking to generate immediate savings and positive cash flows as it allows them to reap the benefits of solar energy without the required capital expenditure to own and operate the equipment.
“We are very proud of the work the team has done to develop these projects and close this latest fund,” said Mike Hall, CEO of Borrego Solar. “We’d like to thank our existing affiliates for their continued support, and are excited about our growing partnership with National Cooperative Bank. Partnerships and projects like these create new local jobs and help organizations generate solar electricity at zero upfront cost, allowing us to make progress in our mission to accelerate the adoption of renewable energy.”
Borrego Solar’s latest round of funding comes on the heels of the $47 million round completed in December 2011 with U.S. Bank and East West Bank, which financed 11 MW of solar projects.