San Diego-based Borrego will construct a total of eight PV plants totaling around 18 MW in generation capacity. The company has been raising funds for the project financing since 2009 and this new addition is the largest amount. Borrego’s customers buy the electricity via PPAs, or Power Purchase Agreements.
National Cooperative Bank is contributing $31.7 million in financing. Bloomberg reports that investors creating installation funds for solar developers can take advantage of a 30 percent investment tax credit for solar power. But since National Consumer Bank is providing a debt for the fund, it cannot take tax benefits.
Borrego spokesperson David Lipson also told the media, "U.S. Bancorp is Borrego Solars equity partner and the two of us, as owners of the projects, will take the 30 percent ITC and depreciation."