Borrego Solar Systems announced it closed a $47 million fund to finance solar PV projects in California and Massachusetts.
In California, Borrego plans to install six megawatts (MW) of solar systems, including 10 projects for three school districts. In Massachusetts, it will fund two solar PV systems, one of which will be the largest in the state at 4.7 MW.
Borrego operates under the increasingly popular solar leasing business model: it builds and owns the solar system, and charges the customer for solar as a monthly electricity bill. The customer gets the advantages of solar without any upfront installation costs.
U.S. Bank and East West Bank are providing the financing for corporate, education and municipal solar projects.
"Borrego Solar has consistently identified, developed and executed some of the strongest and most financially-viable solar energy projects," says Darren Van’t Hof, director of renewable energy investments for U.S. Bank.
In June, 2011, financing from the same banks funded nearly 9 MW of projects, including the city of Easthampton, Mass., the Archdiocese of Newark, NJ, Edwards Air Force Base and Santa Clara County, Calif.
Founded back in 1980, Borrego has installed over 1,000 systems for government and commercial clients, totaling about 40 MW. It raised $14 million in 2009 when it launched a commercial power purchase program that could be leveraged to finance $100 million in projects.
SolarCity, the leading solar installer in the US, who also works off of a solar leasing model, announced plans to go public last week.
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