Municipalities and other public entities may find that issuing bonds is the best way to finance their solar power installations.
General Obligation Bonds, Clean Renewable Energy Bonds and Qualified Energy Conservation Bonds have funded a number of public sector renewable energy projects.
Solar Bond Financing Benefits
Solar bonds are similar to cash, in that a public entity can maximize its return on the solar investment by owning it outright.
Customers are able to save on energy costs through solar without needing the capital on hand or having to go through a third-party financier.
Energy users, such as these below, can still reduce their energy costs and relieve operating budgets for more mission critical initiatives without needing to come up with the necessary capital themselves or go through a third-party financier:
- Municipal airports
- Public educational institutions such as K-12 schools, community colleges and public universities
- Water agencies such as wastewater treatment plants
- Tribal, county, city or town governments
General Obligation Bonds (G.O. Bonds) can be used to fund a singular project or multiple projects. For example, a school district can use a G.O. Bond for infrastructure improvements that includes a solar power installation along with energy efficiency upgrades.
A General Obligation Bond (G.O. Bond) for the Peralta Community College District fully financed the solar power installation at Laney College. The energy savings reduces its operating costs and frees up funds for other expenses such as teacher salaries, school books and other educational resources.
“Borrego Solar worked well with Gilbane Building (the design-build partner on the new construction project) and the 231 kW project was completed on schedule and with relative ease.”
Clean Renewable Energy Bonds (CREBs) are bonds specifically designated for capital expenditures that generate renewable energy. State, local and tribal government entities can invest in solar energy with this federally subsidized financing instrument.
Qualified Energy Conservation Bonds (QECBs) can be used for qualified energy projects, including:
- Improving energy efficiency in public schools
- Lowering energy usage in publicly owned buildings
- Expanding rural electricity capacity with renewable energy resources
QECBs also allow bond issuers to choose to receive cash rebates from the U.S. Department of the Treasury to finance their interest payments on the bond principal.
Borrego Solar for Your Solar Power Solution
Borrego Solar partners through the full lifecycle of the project: from initial assessment through to completion and continuing with ongoing operations and maintenance.
If you’re looking to get a bond measure voted on and approved, our team can help define the scope of the solar project and help draft the budget. We have a proven track record of constructing within budget and on time. Reduce risk and hassle by working with us.