U.S. Bancorp and ORIX USA announce the closing of U.S. Bancorp’s first renewable energy syndication, which is expected to enable SolarCity to install approximately 2,500 solar power systems at homes and businesses in nine states. The transaction will allow first-time and experienced investors to tap into the renewable-energy tax credit market.
The syndication is expected to finance more than $100 million in solar projects in Arizona, California, Colorado, Connecticut, Hawaii, Massachusetts, Maryland, New Jersey and New York, with more to come.
The savings, in terms of carbon emissions, would be equivalent to removing 4,250 cars from the road. The fund makes it possible for home and business owners to install solar panels with no upfront cost and pay less for solar electricity as compared to utility power.
“This is a new phase of business development for U.S. Bancorp,” said Zack Boyers, chairman and CEO of U.S. Bancorp Community Development. “Entering into our first renewable energy syndication agreement allows us to expand SolarCity’s ability to install more energy-saving solar arrays on homes and businesses across the nation that will produce more jobs and assist in the country’s economic recovery.”
The syndication is a gain on multiple fronts for U.S. Bancorp: It boosts capital in the solar market, increases use of clean energy and diversifies the bank’s ability to serve the needs of a growing market.
The syndication deal marks ORIX’s entry into the renewable-energy tax credit financing market.
“We welcome the opportunity to help consumers and businesses reduce greenhouse gas emissions by becoming solar energy users,” said Andrew Garvey, managing director and head of ORIX Municipal Finance. “ORIX is a unique platform, and this transaction shows how we can make our capital available in innovative ways to achieve the financing needs of our clients.”
The installations will produce more than 350 construction and installation jobs. They will also generate $76 million in economic impact from salaries, equipment purchases, construction materials and secondary spending by workers on local services and on solar industry vendor supplies and services.