June 27, 2016
NY Green Bank Announces Closing of $25 Million Construction Loan to Accelerate Residential Solar Installations Across the State
Project financing is expected to spur residential solar projects statewide
NY Green Bank today announced the closing of a $25 million loan for Sunrun Inc., which will accelerate construction of more than 5,000 solar projects at homes across New York State. This loan complements a separate $25 million NY Green Bank transaction with Sunrun, announced by Governor Andrew M. Cuomo last month, which provides longer-term financing following completion of the projects.
With both construction and longer-term financing in place, Sunrun will be able to meet the growing demand from homeowners and expand its ability to finance the installation of solar projects in New York State. The loan announced today will pay for the cost of purchasing materials and installing the solar projects. Sunrun designs, installs, finances, insures, monitors and maintains homeowners' solar panel installations, so families can have more predictable electricity bills for 20 years or more without a high upfront cost.
"This transaction will allow for construction of a significantly larger number of residential solar systems, which drives down system costs and creates jobs for contractors and installers," said Alfred Griffin, President of NY Green Bank. "It will also encourage other capital providers to more actively participate in the clean energy marketplace, as it drives standardization of residential solar construction financing products."
NY Green Bank's participation as part of two consortia of capital providers in these two financings with Sunrun will broaden the availability of solar financing for homeowners statewide, in support of Governor Cuomo's Reforming the Energy Vision (REV) strategy to build a clean, affordable and resilient energy system for all New Yorkers. Under REV, New York State is implementing the Clean Energy Standard, which requires that 50 percent of energy used in the State come from renewable resources by 2030.
By providing financial products for solar and other clean energy projects that are not readily available from private lenders, NY Green Bank helps project developers keep up with growing demand, standardizes financing documentation, and overcomes financing barriers that can hamper the growth of clean energy projects.
NY Green Bank is a division of the New York State Energy Research and Development Authority (NYSERDA) and a key component of New York's 10-year, $5.3 million Clean Energy Fund (CEF) to accelerate the use of clean energy, reduce greenhouse gas emissions, increase energy efficiency, and spur economic development in New York State.
John Rhodes, President and CEO, NYSERDA, said, "Many solar developers face the challenge of securing sufficient financing to meet customer demand, which hampers their ability to grow and drive a larger number of projects to completion. This transaction demonstrates the State's investment in advancing Governor Cuomo's clean energy goals."
The 10 NY Green Bank transactions closed to date total $121 million stimulating $518.3 million in clean energy projects in New York State. These projects are expected to reduce lifetime greenhouse gas emissions in New York State by more than 2.9 million metric tons, which is equivalent to taking more than 37,000 cars off the road for 17 years.
About NY Green Bank
NY Green Bank, a Division of the New York State Energy Research and Development Authority (NYSERDA), is a $1 billion state-sponsored specialized financial entity that works with the private sector to identify, address, and alleviate market barriers preventing the widespread deployment of clean energy across New York State. NY Green Bank uses demonstrated financing tools to promote self-sustaining markets, while enabling private sector capital providers to expand the frontiers of current commercial clean energy investment opportunities. NY Green Bank is a key component of the Clean Energy Fund (CEF), a 10-year, $5 billion commitment by New York State to advance clean energy market growth and innovation while reducing ratepayer collections and driving economic development. More information is available at www.greenbank.ny.gov.
About Reforming the Energy Vision
Reforming the Energy Vision is New York Governor Andrew M. Cuomo's strategy to build a cleaner, more resilient and affordable energy system for all New Yorkers. REV places clean, locally produced power at the core of New York's energy system which protects the environment and supports the State's goal to reduce greenhouse gas emissions by 40 percent while generating 50 percent of its electricity from renewable energy sources by 2030. Successful initiatives already launched as part of REV include NY-Sun, NY Green Bank, NY Prize, K-Solar, and includes a commitment to improve energy affordability for low-income communities. To learn more about REV, please visit www.ny.gov/REV4NY or follow us at @Rev4NY.
Sunrun (Nasdaq: RUN) is the largest dedicated residential solar company in the United States with a mission to create a planet run by the sun. Since establishing the solar as a service model in 2007, Sunrun continues to lead the industry in providing clean energy to homeowners with little to no upfront cost and at a savings to traditional electricity. The company designs, installs, finances, insures, monitors and maintains the solar panels on a homeowner's roof, while families receive predictable pricing for 20 years or more. For more information, please visit: www.sunrun.com.
NYSERDA, a public benefit corporation, offers objective information and analysis, innovative programs, technical expertise, and funding to help New Yorkers increase energy efficiency, save money, use renewable energy, and reduce reliance on fossil fuels. NYSERDA professionals work to protect the environment and create clean-energy jobs. NYSERDA has been developing partnerships to advance innovative energy solutions in New York State since 1975. To learn more about NYSERDA’s programs and funding opportunities, visit nyserda.ny.gov or follow us on Twitter, Facebook, YouTube, or Instagram.