Borrego Solar Systems, Inc., a designer and installer of grid-tied solar electric power systems, introduced a new financing option for schools, companies and government organizations interested in adopting solar energy.
Borrego’s new power-purchase agreement (PPA) program gives its customers a simple way to finance solar projects without assuming the up-front costs of the project or working with a third-party financier.
With $30 million backing from a PPA fund launched by Walsin Lihwa, a current investor, Borrego said it can develop and finance more than $100 million solar projects over the next 12 months.
The PPA program is also the first commercial PPA of its kind designed to finance school and commercial solar projects in Massachusetts. Borrego said it has already received interest in the program from early customers in Massachusetts, New Jersey and California.
“We continue to see significant demand for grid-tied solar systems, but a common concern for many customers is the lack of financing available to design, install and maintain the system,” said Mike Hall, CEO of Borrego Solar. “And though the PPA is not a new concept, some customers don’t want the hassle of finding a third-party financing option or the restriction of having to deploy the technology chosen by the PPA provider. By choosing a Borrego PPA, customers deal with one company for system financing, design, construction, operation and maintenance. As a result of this program Borrego is now able to offer our customers a ‘one stop shop’ for all solar energy services–all without the technology lock-in of other programs.”
Borrego finished 2008 with $58 million in revenue and more than $90 million in contracts, according to a release. By offering a commercial PPA, the company expects to increase the size and scope of projects it designs, builds and manages.
In February, Borrego raised $14 million in venture financing to fund a geographic expansion. That same month, Borrego agreed to sell its residential division to groSolar in order to focus on commercial and government markets.
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