GE Energy Financial Services, a unit of GE (NYSE: GE), announced today that it is partnering with SunPower Corporation (NASDAQ: SPWR)–a Silicon Valley-based manufacturer of solar cells, panels and systems–to provide financing for five California solar power projects.
The projects, totaling approximately eight megawatts (MW), include a system for Toyota Motor Sales’ Parts Center that will be the largest single-roof solar power installation in the United States, according to a release. The companies are also collaborating on solar projects for HP, Agilent and two county and regional agencies.
The joint venture streamlines the implementation of large commercial and public solar power systems. It also helps California meet the goals of the California Solar Initiative to generate 3,000 MW of new, solar-produced electricity by 2017.
GE Energy Financial Services is acquiring a majority equity interest in the five solar photovoltaic projects, which SunPower will design and build, operate and maintain. GE Energy Financial Services will finance and own the systems under the SunPower Access power purchase agreement program, which allows customers to take advantage of the environmental and financial benefits of solar power with no upfront capital costs.
The solar electricity will be competitively priced against retail rates, providing customers a long-term hedge against rising peak power prices. Construction of the projects is scheduled to begin in February and be completed by the end of the year.
The five solar projects are:
• Toyota Motor Sales, USA, Inc., Ontario, California: A 2.3-MW rooftop solar power system at the Toyota Motor Sales, USA Ontario Parts Center. The new system will be the largest single-roof solar power installation in the United States.
• HP (NYSE: HPQ), San Diego: A one-MW rooftop system serving an eight-building printing technology R&D facility.
• Agilent Technologies, Santa Rosa, California: A one-MW solar tracking system installed atop a canopy structure in the Agilent campus parking lot, providing both shade in the lot and solar electric power for the facility.
• Lake County, California: Ground-mounted solar systems at three sites, serving a correctional facility in Lakeport and two wastewater treatment plants in Lakeport and Clearlake, totaling 2.4MW. The project will provide 85% of the power required by the county’s correctional facility.
• Rancho California Water District, Murrieta, California: A one-MW ground-mounted system, covering 10 acres.
"Aggregating several projects into one portfolio gives us financial scale to realize the advantages of project finance structuring," explained Kevin Walsh, managing director and leader of renewable energy at GE Energy Financial Services. "In addition, this transaction diversifies our renewable energy portfolio with more solar assets and supports ecomagination, GE’s program to help its customers meet their environmental challenges while expanding its own portfolio of cleaner energy products."
About GE Energy Financial Services
GE Energy Financial Services’ 350 experts invest globally with a long-term view, backed by the best of GE’s technical know-how and financial strength, across the capital spectrum and the energy and water industries, to help their customers and GE grow. With $16 billion in assets, GE Energy Financial Services, based in Stamford, Connecticut, invests more than $5 billion annually in two of the world’s most capital-intensive industries, energy and water. In renewable energy, GE Energy Financial Services is growing its portfolio of more than $2 billion in assets in wind, solar, biomass, hydro and geothermal power. More information: www.geenergyfinancialservices.com.
About SunPower
SunPower Corporation (Nasdaq: SPWR) designs, manufactures and delivers msolar electric systems worldwide for residential, commercial and utility-scale power plant customers. SunPower says its high-efficiency solar cells and solar panels generate up to 50% more power than conventional solar technologies and have a uniquely attractive, all-black appearance. 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).
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