It was in August that U.S. Energy Secretary Steven Chu announced the offer of a conditional commitment for a partial guarantee of a $344 million loan to help secure financing for SolarCity’s “SolarStrong” project. The project, partnered SolarCity with the country’s leading military housing-privatization developers to install 160,000 rooftop solar installations on as many as 124 military housing developments across the US. Then after the Solyndra shutdown in September the DOE withdrew from the project. But today SolarCity and Bank of America Merrill Lynch have announced that they have agreed to terms on financing for SolarStrong, SolarCity’s ambitious five-year plan to invest more than $1 billion in the solar power project. As part of the project, SolarCity plans to partner with the country’s leading privatized military housing developers to install, own and operate rooftop solar installations and provide solar electricity at a lower cost than utility power. SolarStrong is ultimately expected to create up to 300 megawatts of solar generation capacity that could provide power to as many as 120,000 military housing units. SolarStrong would be the largest residential solar photovoltaic project in American history. Solar City is a leading national solar services company.
After the Solydra failure and the Department of Energy withdrew their commitment from the Solar Strong project, skeptics were predicting doom for the entire green sector however, Lyndon Rive, SolarCity’s chief executive officer said, “BofA Merrill never wavered when the loan guarantee wasn’t finalized and worked with us to create a financing structure that works without it.SolarStrong makes affordable clean energy available on a much greater scale. This is uncharted territory for residential solar. The fact that SolarStrong can move forward without a federal loan guarantee is a clear indication that long-term incentives such as the investment tax credit are working.”“This project demonstrates the long term viability of large-scale, distributed solar generation,” said Jonathan Plowe, head of New Energy and Infrastructure Solutions at BofA Merrill. “We are excited to see the project through with SolarCity and extend our expertise and financing capabilities to propel residential solar to the next level.”
SolarCity now expects SolarStrong to create thousands of full-time and temporary jobs. The company says it hopes to provide as many of those jobs as possible to U.S. veterans and military family members, which have been among those hardest hit by the economic downturn. SolarCity has added more than 1,200 new, full-time workers since the recession began in December 2007; creating more than one new job per workday in that timeframe. “This is a groundbreaking transaction that represents a key milestone for the U.S. solar industry,” said Tim Newell, managing director for USRG Renewable Finance, financial advisor for SolarStrong. “We’re proud to be part of this project that will invest in military communities across the United States.”
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