Six New Transactions Advance the State’s Solar Industry and Support New York State’s Nation-Leading Clean Energy Standard of Half of Electricity to Come from Renewable Sources by 2030
April 27, 2017
NY Green Bank today announced it closed six new financing transactions in the first quarter of 2017 totaling $40.6 million in new clean energy commitments supporting New York’s nation-leading goal for half of the state’s electricity to come from renewables by 2030. The announcement, made during Earth Week, underscores Governor Andrew M. Cuomo’s commitment to affordably and efficiently scale the development of innovative clean energy technologies to reduce greenhouse gas emissions and combat climate change.
NY Green Bank also reported the issuance of two new open solicitations to further diversify its portfolio that will streamline the process for project financing for energy efficiency in commercial and multi-family properties, and solar for corporate and industrial end users. NY Green Bank is a $1 billion State-sponsored finance entity supporting clean energy development in New York.
New York State Chairman of Energy and Finance Richard L. Kauffman said, “This latest announcement demonstrates NY Green Bank’s continued momentum in bridging financing gaps for clean energy projects, which are making a difference in New York's leading clean energy economy while reducing greenhouse gas emissions. The $40.6 million in new transactions will drive economic development and are directly contributing to Governor Cuomo’s Reforming the Energy Vision (REV) strategy to build a clean, resilient and affordable energy system.”
“We’re pleased to build on the significant momentum we achieved last year with continued strong growth in the number of clean energy transactions we were able to complete this quarter. We expect continued strength as we pave the way for additional projects through the new investment solicitations for commercial and multi-family efficiency projects and for corporate and industrial solar, furthering our ability to accelerate the deployment of targeted clean energy technologies in New York State,” said Alfred Griffin, NY Green Bank President.
The transactions demonstrate New York’s commitment to growing the economy by expanding private sector participation in the clean energy marketplace and by providing financing for new projects that will provide clean energy to thousands of residents statewide. These latest transactions bring NY Green Bank’s total amount of committed funds to $346.1 million – which is expected to mobilize between $1 billion to $1.4 billion in investment in clean energy projects in New York State – and include:
- $10.5 million in financing for Distributed Sun, a national energy services provider and Building Energy, a multinational company in the renewable energy industry, to construct four solar projects serving Cornell University in Ithaca, as part of NY Green Bank’s objective to bring scale and standardization to clean energy projects at municipalities, universities, schools and hospitals (MUSH), and the commercial and industrial solar sectors;
- Two additional transactions totaling $3 million with Distributed Sun’s affiliate SUNEIGHT LLC to finance new Community Distributed Generation (CDG) projects in the Southern Tier region, with projects located in Dryden, Middlesex, and Spencer, NY (the original transaction included a $1 million bridge loan from NY Green Bank, and the second was an increase of that initial facility bringing the total to $3 million);
- $6 million for Spruce Finance, Inc., a national residential solar power provider, that is increasing its activities in New York State. NY Green Bank’s financing is estimated to result in approximately 760 residential rooftop solar installations across New York State;
- $1.1 million for the second project in a larger portfolio of commercial and industrial solar projects, developed by BQ Energy, a renewable energy project developer specializing in landfill and brownfield site redevelopment. The financing will result in a new industrial solar project in Ulster County, in the town of Esopus, and will help expand financing opportunities for smaller (i.e., less than 10 MW) solar systems by fostering standardization, including a streamlined, uniform approach to integrating contractors, developing contracts and utilizing standardized equipment.
- $20 million for Vivint Solar, a leading national residential solar installer, to expand its operations in New York State – where it currently employs approximately 200 people – and is estimated to result in 3,000 new residential rooftop systems.
In addition to these new transactions, NY Green Bank has issued two new investment solicitations, or Requests for Proposals (RFPs), which complement NY Green Bank’s original and ongoing investment RFP by streamlining the application process for certain project types.
The first solicitation is aimed at enabling commercial real estate and multi-family property owners to finance the installation of solar PV systems and/or energy efficiency improvements where they seek to directly own such improvements, rather than with a third-party owner of the assets. NY Green Bank seeks to accelerate finance ability and deployment in this market by providing a public set of terms under which financing would be considered.
The second solicitation aims to enhance access to affordable finance by providers of electricity produced by small ground-mounted solar PV installations where the power is sold to corporate and industrial off-takers that do not benefit from a public credit rating. These RFPs are expected to increase transaction volumes resulting in a standardized portfolio of financings at scale, which will attract further private sector investment.
New York State Energy Research and Development Authority President and CEO John B. Rhodes said, “The latest NY Green Bank deals show the great market interest in clean energy technologies that are stimulating economic development and creating jobs. These investments support Governor Cuomo’s aggressive energy agenda, with the goal to reduce greenhouse gas emissions and fight climate change.”
NY Green Bank is a division of NYSERDA. All NY Green Bank’s investments and activities support the Governor’s Clean Energy Standard, which requires that 50 percent of the State’s electricity come from renewable sources by 2030.