$60 Million Private Solar Financing Begins

By Published On: June 18, 2005

A $60 million fund arranged by Solar Edison will pay for the installation and operation of 3.1 MW of solar power, including initial projects in California. ?Our pioneering fund helps qualifying companies reap the benefits of solar electricity with no up-front cost and without affecting their balance sheet,? Solar Edison founder Jigar Shah pointed out. Solar Edison said the fund structure consists of construction loans, senior term loans, and partnership equity, all of which will be drawn down over the course of one year. A Hudson United Bank division provided the construction and senior term loans, while a Goldman Sachs Group affiliate is providing equity. The first three projects using the fund will be installed this summer on three Staples facilities in Rialto and Ontario, California, and Englewood, New Jersey, providing a total of 680 kW of generating capacity. Also under contract, Shah said, is a 1.1 MW system for California?s Chuckawalla State Prison and 280 kW for the Patton State Mental Health Hospital, both of which will be installed next March. The rest of the capacity that Solar Edison is contracted to install in California will go to various locations in the state university system, he said. Shah said each system will be owned by the fund, which will pay all the costs of installation and operation. The entities getting each system?s electricity will pay a fixed, often below-market rate for the power generated for a 10- to 20-year term.

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