SolarCity secures funding for major solar project without federal help
Many in the solar sector feared that the dramatic collapse of the California-based Solyndra, and the furor over its loan guarantee, would slow down the solar industry. But now The Los Angeles Times reports that solar installer SolarCity managed to overcome these concerns and secure funding for a major project to add rooftop solar installations on thousands of military houses.
The U.S. military has been investing heavily in renewables as a way of both saving money and reducing its susceptibility to the gyrations of the energy market. The SolarCity project is slated to supply more than 300 megawatts of renewable electricity generation capacity for 120,000 houses spread over 33 different states, according to Bloomberg.
More importantly for those interested in solar power, SolarCity was able to secure $350 million of funding from Bank of America to start the project without any support from the federal government.
"This is the first project of this kind of scale to be financed without a federal loan guarantee," Lyndon Rive, SolarCity’s chief executive officer, told the Times.
Before the Solyndra bankruptcy, SolarCity and Bank of America had been in negotiations to receive a loan guarantee, but the progress made in those talks allowed the two parties to come to an agreement without federal assurances.