SunRun has received an additional commitment of tax equity from a US Bancorp subsdiary to support the purchase of $200 million in residential solar systems.
The commitment is U.S. Bancorp’s largest renewable energy tax equity fund to date.
SunRun owns, installs, and maintains home solar systems so families don’t have to pay the upfront cost of installation, which often runs at $30,000 or more. Instead, SunRun owns the system and homeowners a monthly electricity fee for the solar energy. Customers also have the advantage of locking in their monthly electric rates for 20 years, so they no longer have to worry about rising electricity rates. An average SunRun solar customer can save tens of thousands of dollars over the life of the agreement.
The company now makes solar available in eight U.S. states: Arizona, California, Colorado, Hawaii, Massachusetts, New Jersey, Oregon, and Pennsylvania.
"It’s critical for U.S. Bancorp to have an existing portfolio of proven renewable energy investments as we expand our financing in the space, and SunRun is a core part of that base," said Darren Van’t Hof, director of renewable energy investments for U.S. Bancorp. "With strong management and a solid business model, SunRun exemplifies the partners we look for to help facilitate the growth of the renewable energy industry."
This tax equity commitment, SunRun’s fifth and largest transaction with U.S. Bancorp, is supported by the 1603 Treasury Grant Program. By allowing renewable energy projects to use a cash grant of equal value to the Investment Tax Credit, the 1603 program helped stimulate $9 billion of new investment in clean energy in the U.S. in 2009.
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