Bank of America Merrill Lynch (BofA) has joined with SolarCity and US Renewables Group in Project SolarStrong, the largest residential solar power project to date and the first of its kind in the US.

SolarStrong is expected to create more than $1bn in solar projects and 371 megawatts of new solar generation capacity through the installation of rooftop photovoltaic (PV) systems on up to 160,000 US military residences on as many as 124 US military bases in 33 states.

The transaction is led by BofA Merrill's Cross Asset Solutions and Strategies group, a team established to leverage the bank's entire platform and coordinate the vast resources of the firm from origination to execution, in partnership with the company's Global Investment Banking and Leasing teams.

The project aims to create thousands of jobs and provide low-cost, renewable electricity, while avoiding the emission of over 250,000 metric tons of carbon dioxide annually. Many of the jobs are expected to be filled by US veterans and military family members, who will be recruited, trained and employed to install, operate and maintain the PV systems.

Debt and equity

The project will be financed by the private sector through a combination of debt and equity, and the US Department of Energy's Loan Programs Office has offered a conditional commitment for partial guarantee of a $344m loan. SolarCity will install, own and operate the rooftop solar installations. USRG Renewable Finance, a subsidiary of US Renewables Group, is acting as lead lender and BofA Merrill will provide debt financing for the project, as well as advisory and administrative services.

This is the second significant solar deal BofA has announced in three months, the first being Project Amp. Together, these projects are predicted to propel residential and industrial solar distribution to the next level by creating a blueprint for future projects of this size.

Jonathan Plowe, head of new energy and infrastructure solutions at BofA said: "We are pleased to add Project SolarStrong to our growing business of financing large-scale solar projects that generate clean, renewable energy while creating thousands of jobs in local communities across the U.S. This project has the added benefit of creating training and employment opportunities for military families and veterans who sacrifice so much for our country."

Thousands of workers are expected to be hired over a five-year period to complete the SolarStrong project, which will include installing solar systems on military housing units and other privatized buildings on military bases, such as community centers, administrative offices, maintenance buildings and storage warehouses.

And further afield

The SolarStrong project will also provide a secure new domestic source of power to help meet the energy needs of the US’ military bases. The first stage of the SolarStrong project is already underway at Hickam Communities at Hickam Air Force Base in Honolulu, Hawaii. When completed, that location alone will provide renewable power to more than 2,000 military family homes. Additional installations are expected to follow on military sites in states such as Nevada, Kentucky, California and Texas.

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