Borrego Solar secures USD$20 million financing for solar project

The system will consist of nine solar arrays to be installed at six locations across the San Diego Community College District’s (SDCCD) campuses. The majority of the project cost will be funded through financial commitments from East West Bank and U.S. Bank, and the remainder will be contributed by the PPA fund launched last year by Walsin Lihwa, a current investor in Borrego Solar.

Under the terms of the 20 year agreement with the SDCCD, Borrego Solar will build, operate and maintain the solar systems, selling the energy to the SDCCD at rates that are approximately 18 percent less than the rates charged by San Diego Gas & Electric—resulting in a savings of more than $110,000 annually.

“Borrego Solar demonstrated that it is an ideal investment partner by presenting us with the shovel-ready SDCCD project, a signed PPA contract and the support of the Walsin Lihwa PPA fund along with U.S. Bank’s equity investment. With this infrastructure in place, we were able to quickly agree to contract terms and closing,” commented K.Y. Cheng, executive vice president, East West Bank.

Mike Hall, CEO of Borrego Solar added: “Financing a solar energy system using a PPA has emerged as an extremely appealing option for customers. We have seen a tremendous uptick in demand since introducing our PPA model, especially as expiring government grant programs and shrinking state rebates have stalled a number of projects.”