The fund will be used to build 14 systems with direct current generating capacity of 11 megawatts, Bill Bush, chief financial officer of Berkeley, California-based Borrego, said by e-mail.
Borrego’s customers buy the electricity from systems it installs through a financing arrangement known as a power purchase agreement. The structure eliminates the need to pay upfront installation costs, and the power is bought at a fixed monthly rate that’s lower than a typical utility bill, according to the company.
Banks or other investors, including utilities, that create installation funds can take advantage of a 30 percent investment tax credit for solar energy.
U.S. Bank and East West Bank created a similar $46 million fund for Borrego in June and provided $56 million in project financing prior to that.
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