Earlier this week (June 27), NY Green Bank closed a $25 million loan allowing Sunrun to cover the up-front cost of materials and construction for over 5,000 residential solar projects in New York state. The loan follows a previously announced a $25 million NY Green Bank loan with Sunrun to provide long-term financing for the projects, enabling homeowners to save on their electric bills. Now, with a total of $50 million in funding the two loans to Sunrun will work together to lower the cost of solar for homeowners while increasing the amount of solar energy installed statewide.
NY Green Bank’s loans will help Sunrun meet growing demand for residential solar installations, while expanding the bank’s ability to finance other solar projects statewide. The goal is for homeowners to have more predictable energy costs over more than 20 years, without having to pay the high upfront cost of installation. With the funding provided by NY Green Bank, Sunrun is able to design, install, finance, insure, monitor and maintain homeowners’ solar panel installations.
“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.”
This type of financial support for clean energy projects is not yet readily available from private lenders. But by creating such loans NY Green Bank helps project developers keep up with growing demand. Meanwhile it provides standardized financial documentation which will serve as a template for future financing contracts, bringing their transactional costs down.
These efforts are expanding the availability of solar financing for New Yorkers statewide and are supporting the implementation of the state’s Clean Energy Standard, which requires that 50 percent of electricity used in the New York comes from renewable resources by 2030.
Sunrun, a California-based company continues to expand into the northeast with partnerships in other states. For instance it’s recently partnered with companies to further expand into Massachusetts and New Jersey.Tweet