Kenyon Energy, LLC in partnership with The Town of Deerfield, Key Equipment Finance, and Lake Street Development Partners, today announced that a 6-MW solar array in Deerfield, Mass., is due to begin commercial operation in November 2017.
The ground mount array comprises 18,720 high-efficiency solar panels and sits on about 23 acres of privately-owned land. In its first year, the array is projected to produce more than 7,200 MWh of electricity.
The solar array is the first to be installed in South Deerfield and could be groundwork for future solar energy projects. The Deerfield array marks an important step in the city’s sustainability initiatives, and the agreement sets a fixed property tax rate on the development over a span of 20 years, instead of it fluctuating based on a yearly valuation. The Town of Deerfield is expected to net a total of $1.24 million from this tax.
“We have been proud to work with Lake Street Development Partners, along with Key Equipment Finance, and The Town of Deerfield to complete this renewable installation,” said Ray Gonzalez, President of Kenyon Energy. “These efforts are part of the town’s long-term strategy to cut the environmental footprint and deliver long-term value to the businesses and communities where people live and work.”
Kenyon Energy, one of the nation’s leading solar technology and energy services provider, managed all aspects of the project from the point of arranging the engineering, procurement, and construction (EPC) services, through the construction process and forward to commercial operation of the project. Key Equipment Finance, one of the nation’s largest bank-held equipment finance companies and an affiliate of KeyCorp, provided financing in the form of a sale leaseback supported by a Power Purchase Agreement (PPA). With the closing of financing, Bay4 Energy Services will provide asset management services including operations and maintenance for the life of the system.
“Key Equipment Finance’s long-term partnership with Kenyon Energy enables them to monetize tax benefits, including investment tax credit and depreciation,” said Doug Beebe, vice president, energy finance, Key Equipment Finance. “Creative financing solutions like this make it possible for Kenyon Energy to own and operate solar projects and sell the power at a discounted rate to cities and towns like Deerfield, to support their sustainability goals.”