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Key EF Provides $9.7MM Financing to Community Energy for Solar Projects

October 31, 2018, 07:20 AM
Filed Under: Energy

Key Equipment Finance announced it has provided a $7.8 million tax lease and a $1.9 million term loan to Radnor, Pa.-based Community Energy, Inc., a provider of utility-scale wind and solar projects, for community solar projects in Massachusetts totaling 3.75 MW (DC).

Split between solar farms in the towns of Barre and Rutland, the projects will generate remote net metering credits. A Massachusetts commercial customer will purchase half the generation output, with the remainder purchased by residential community solar subscribers.

Community Energy used sale-leaseback financing for the project, which includes a Power Purchase Agreement and allows monetization of the tax benefits, inclusive of the investment tax credit and depreciation. In this solar tax lease structure, Community Energy owns and operates the system and sells the power.

“Customized financing plays an important role by bringing the benefits of community solar to more customers,” said Doug Beebe, vice president of energy finance for Key Equipment Finance Clean Energy, which provides financing across all types of clean energy products. “It also contributes to Key’s broader sustainability goals.”

“The partners on these Massachusetts solar projects are leading the way on sustainability and climate change” said Brent Alderfer, CEO of Developer, Community Energy Solar. “Our leading corporate customer on this solar project, joined by local residents, agreed to buy the solar output under the National Grid Utility community solar program, and Key Equipment Finance, with its expert solar finance team, sealed the deal by providing project finance.”

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