Borrego Solar Secures $47 Million From U.S. Bank and East West Bank For Solar Energy Projects

SAN DIEGO--(BUSINESS WIRE)--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.

“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.