Large-Scale Distributed Solar Project Gets Major Boost from Private Financial Backer
SolarCity Corp., a solar power company that lost a $344 million conditional loan guarantee from the Department of Energy (DOE) in the political rumpus following the Solyndra’s failure, today announced it would move ahead with an ambitious five-year plan to build more than $1 billion in solar power projects for privatized U.S. military housing communities across the country.
The company and financial partner Bank of America Merrill Lynch said they had agreed to terms on financing for the project. As part of the project that is expected to create up to 300-MW of solar generation capacity, SolarCity plans to partner with privatized military housing developers to install, own and operate rooftop solar installations and provide solar electricity at a lower cost than utility power. The project, dubbed “SolarStrong,” could be the largest residential solar photovoltaic project in the U.S. when completed.
The DOE offered Foster City, California-based SolarCity a conditional guarantee for 80% of a $344 million loan on Sept. 7, the day before failed solar panel maker Solyndra filed for bankruptcy. In the uproar and increased scrutiny of federal loan guarantees to clean energy projects that ensued, SolarCity said it was unable to close the loan before the renewable loan guarantee project expired at the end of the month.
Private equity firm U.S. Renewables Group (USRG) served as financial advisor for SolarStrong. “SolarCity and USRG began the loan guarantee application process under DOE’s Section 1705 loan guarantee program in October 2010, and BofA Merrill subsequently joined the application as lender,” the company added. “SolarCity and BofA Merrill continued to work to close SolarStrong without the loan guarantee.”
The project showed increased confidence by financial backers regarding the long-term viability of large-scale distributed solar generation, said Jonathan Plowe, head of New Energy and Infrastructure Solutions at BofA Merrill. “We are excited to see the project through with SolarCity and extend our expertise and financing capabilities to propel residential solar to the next level.”
“When SolarCity began to plan SolarStrong in mid-2010, the company did not believe it could secure financing for a project of such a scope without a loan guarantee from the U.S. Department of Energy (DOE),” SolarCity said in a statement today.
“BofA Merrill never wavered when the loan guarantee wasn’t finalized and worked with us to create a financing structure that works without it,” said Lyndon Rive, SolarCity’s chief executive officer. “SolarStrong makes affordable clean energy available on a much greater scale. This is uncharted territory for residential solar. The fact that SolarStrong can move forward without a federal loan guarantee is a clear indication that long-term incentives such as the investment tax credit are working.”
Sources: POWERnews, SolarCity
The company and financial partner Bank of America Merrill Lynch said they had agreed to terms on financing for the project. As part of the project that is expected to create up to 300-MW of solar generation capacity, SolarCity plans to partner with privatized military housing developers to install, own and operate rooftop solar installations and provide solar electricity at a lower cost than utility power. The project, dubbed “SolarStrong,” could be the largest residential solar photovoltaic project in the U.S. when completed.
The DOE offered Foster City, California-based SolarCity a conditional guarantee for 80% of a $344 million loan on Sept. 7, the day before failed solar panel maker Solyndra filed for bankruptcy. In the uproar and increased scrutiny of federal loan guarantees to clean energy projects that ensued, SolarCity said it was unable to close the loan before the renewable loan guarantee project expired at the end of the month.
Private equity firm U.S. Renewables Group (USRG) served as financial advisor for SolarStrong. “SolarCity and USRG began the loan guarantee application process under DOE’s Section 1705 loan guarantee program in October 2010, and BofA Merrill subsequently joined the application as lender,” the company added. “SolarCity and BofA Merrill continued to work to close SolarStrong without the loan guarantee.”
The project showed increased confidence by financial backers regarding the long-term viability of large-scale distributed solar generation, said Jonathan Plowe, head of New Energy and Infrastructure Solutions at BofA Merrill. “We are excited to see the project through with SolarCity and extend our expertise and financing capabilities to propel residential solar to the next level.”
“When SolarCity began to plan SolarStrong in mid-2010, the company did not believe it could secure financing for a project of such a scope without a loan guarantee from the U.S. Department of Energy (DOE),” SolarCity said in a statement today.
“BofA Merrill never wavered when the loan guarantee wasn’t finalized and worked with us to create a financing structure that works without it,” said Lyndon Rive, SolarCity’s chief executive officer. “SolarStrong makes affordable clean energy available on a much greater scale. This is uncharted territory for residential solar. The fact that SolarStrong can move forward without a federal loan guarantee is a clear indication that long-term incentives such as the investment tax credit are working.”
Sources: POWERnews, SolarCity
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