Financial services firm Morgan Stanley has agreed to provide up to $190 million in financing to solar installation projects contracted by Silicon Valley-based SunPower Corp. (Nasdaq: SPWR).
According to a release, the funds will be used for future commercial and public agency solar electric power installations under SunPower’s Access(TM) program through 2008. The program allows companies and public agencies to purchase solar-generated electricity as an alternative to purchasing the solar power systems themselves.
With the SunPower Access program, SunPower designs, constructs and maintains solar electric power systems to the customer’s requirements. Rather than paying for the system itself, the customer pays for the solar electricity generated over a long-term power purchase agreement. The agreement typically includes options, subject to certain conditions, for the customer to renew the agreement, return the equipment, transfer the equipment to a new site, or purchase the system outright.
According to the company, SunPower solar systems have a projected life of more than 25 years, depending on site location and other variables.
Under reported terms of the agreement, Morgan Stanley and SunPower jointly own a holding company that will finance project companies established for individual installations. The project companies will purchase solar systems from SunPower and resell the electricity to customers. Morgan Stanley will finance up to $190 million and SunPower will finance up to $10 million.
Yesterday, SustainableBusiness.com reported on the planned installation of a SunPower Access system by HP.
About SunPower
SunPower Corporation desiprovides solar electric systems worldwide for residential, commercial and utility-scale power plant customers. With headquarters in San Jose, Calif., SunPower has offices in North America, Europe and Asia. SunPower is a majority-owned subsidiary of Cypress Semiconductor Corp. (NYSE: CY – News).
About Morgan Stanley
Morgan Stanley (NYSE: MS – News) is a leading global financial services firm providing a wide range of investment banking, securities, investment management and wealth management services. The Firm’s employees serve clients worldwide including corporations, governments, institutions and individuals from more than 600 offices in 31 countries. Morgan Stanley’s broad energy portfolio increasingly includes alternative and renewable energy financing, such as with SunPower, to encourage energy efficient technologies. For further information about Morgan Stanley, please visit http://www.morganstanley.com.
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