NY Green Bank just closed 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 nine 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.