Borrego has secured the fund for the SDCCD project through a 20-year power purchase agreement (PPA) with the US bank and East West Bank.
Under the terms of the PPA, Borrego Solar will be responsible for the construction and operation of the solar systems. The project will involve the installation of nine solar arrays at six locations across the SDCCD campuses.
The company will sell the energy to the SDCCD at rates approximately 18% less than the rates charged by San Diego Gas & Electric, resulting in a savings of more than $110,000 annually.
The company will also use a PPA fund launched in 2009 by Walsin Lihwa, a current investor in Borrego Solar, for the development of the project.
K Cheng, executive vice president of East West Bank, said: “Borrego Solar demonstrated that it is an ideal investment partner by presenting us with the shovel-ready SDCCD project, a signed PPA contract and the support of the Walsin Lihwa PPA fund along with US Bank’s equity investment. With this infrastructure in place, we were able to quickly agree to contract terms and closing.”
