Key Equipment Finance, one of the largest bank-held equipment finance companies in the US, has provided $5.1 million in financing to Dynamic Energy Solutions to fund solar farm producing energy for Hobart and William Smith Colleges (HWS).
Dynamic 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, Dynamic Energy owns and operates the system and sells the power to HWS.
Doug Beebe, vice-president of energy finance for Key Equipment Finance’s energy solutions team, which provides leases tailored to the energy market, said: “By using a solar tax lease, Dynamic Energy is leveraging the tax benefits and available grants to make solar energy possible for HWS.
“The students who benefit from the energy produced by this solar farm may also learn about the important role financing plays in making these sustainable practices a reality, since HWS uses the solar project as a clean energy learning lab.”
HWS leases the land for the 10-acre solar farm, which was completed in 2017 and features 7,800 solar panels. The project is being combined with a second solar farm completed in 2016 to generate about 5 megawatts of electricity, which provides about 50% of the educational institution’s electricity needs.
The combined solar farms represent one of the largest state-supported solar installations for a New York college or university.
The project was supported by a grant from the New York State Research and Development Authority (NYSERDA), a statewide solar incentive program to increase the number of solar electric systems across the state and meet the mandate for half of the state’s electricity to come from renewable energy sources by 2030.