Continued Support from Banks Demonstrates Value of Borrego Solar's Integrated Power Purchase Agreement
SAN DIEGO--Borrego Solar Systems, Inc., a leading designer, installer and financier of grid-tied solar photovoltaic (PV) systems, today announced that it had closed a new $47 million fund with partners U.S. Bank and East West Bank to finance solar energy projects for corporate, education and municipal customers. With this fund, U.S. Bank and East West Bank have continued their successful partnership with Borrego Solar, bringing cost effective Power Purchase Agreements (PPAs) to credit worthy government and private sector clients.
"Despite recent skepticism around the expiration of the 1603 Grant, we remain confident in the importance and long-term viability of renewable energy, and we're excited to move these projects forward."
"Borrego Solar has consistently identified, developed and executed some of the strongest and most financially-viable solar energy projects, and this latest round is no exception," said Darren Van't Hof, director of renewable energy investments for U.S. Bank. "Despite recent skepticism around the expiration of the 1603 Grant, we remain confident in the importance and long-term viability of renewable energy, and we're excited to move these projects forward."
The fund will be used to build six megawatts (MW) of solar energy systems in California including ten projects for three school districts. The fund also includes two Massachusetts solar power installations, one of which is expected to be the largest of its kind in the state at 4.7 MW. These projects are expected to create 400 local jobs while generating enough electricity to power nearly 2,000 homes.
"Borrego Solar's experience and technical expertise have made them a terrific partner," said K.Y. Cheng, executive vice president, East West Bank. "We've seen continued financial success in driving solar energy installations in 2011, and we look forward to working with Borrego Solar in 2012 and beyond."
Borrego Solar has seen continued demand for its PPA, whereby Borrego Solar builds, operates and maintains the solar power system for the customer, and then sells the energy back at a reduced and fixed rate. 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 investing the upfront capital costs.
"We're excited about this investment, as it will allow us to deliver on more projects, help organizations go solar with zero up-front costs, and create new jobs," said Mike Hall, CEO of Borrego Solar. "As we continue to build our portfolio of solar projects across North America, we are assisting organizations in finding innovative ways to implement energy savings programs that allow them to focus their investment dollars on other core operating expenditures. We are thrilled to have passionate and committed partners like U.S. Bank and East West Bank. Their support has been invaluable."
Borrego Solar last announced funds with U.S. Bank and East West Bank in June of 2011 to finance nearly nine MW of solar projects for customers such as the city of Easthampton, Mass., the Archdiocese of Newark, NJ, Edwards Air Force Base and Santa Clara County, Calif.
About Borrego Solar
Established in 1980, Borrego Solar Systems, Inc. is one of the nation's leading financiers, designers and installers of commercial and government solar power systems. Borrego Solar's photovoltaic systems are efficient, reliable and cost-effective. With more than three decades of experience and more than 1,000 solar power installations completed—totaling more than 40 MW—Borrego Solar offers a complete line of solar systems design and installation services throughout California, New England, and the Mid Atlantic. For more information, visit www.borregosolar.com.
About East West Bancorp (Nasdaq: EWBC)
East West Bancorp is a publicly owned company with over $20 billion in assets and is traded on the Nasdaq Global Select Market under the symbol "EWBC". The Company's wholly owned subsidiary, East West Bank, is one of the largest independent commercial banks headquartered in California with over 130 locations worldwide, including the U.S. markets of California, New York, Georgia, Massachusetts, Texas and Washington. East West Bank's overseas network includes a full service subsidiary bank in China, i.e. East West Bank (China) Ltd. headquartered in Shanghai and offices in Beijing, Shantou, Shenzhen, Guangzhou; a full service branch in Hong Kong and a representative office in Taipei, Taiwan. For more information on East West Bancorp, visit the Company's website at www.EastWestbank.com.
About U.S. Bancorp (NYSE: USB)
With $311 billion in assets, U.S. Bancorp is the parent company of U.S. Bank, the 5th largest commercial bank in the United States. The company operates 3,082 banking offices in 25 states and 5,238 ATMs and provides a comprehensive line of banking, brokerage, insurance, investment, mortgage, trust and payment services products to consumers, businesses and institutions.
U.S. Bancorp is a recognized leader in financing a variety of renewable energy projects, building on its experience in other tax credit equity investments, including new markets, historic, and affordable housing tax credit investments. U.S Bancorp has committed more than $570 million of renewable energy tax equity to finance over $1 billion of renewable energy projects in the United States primarily in the solar market, and in select opportunities in the wind energy market. Visit U.S. Bancorp on the web at www.usbank.com.