Key Equipment Finance partners with solar integrator Energy Systems & Installation and solar panel manufacturer Centrosolar America to deliver a clean power solution to Credit Plus. The system is projected to save Credit Plus millions over the next 25 years.
Because financing a solar project can be a big hurdle, solar financing has been in the news a lot lately. Financing can even be a barrier to a financial institution going solar. That’s where companies like Key Equipment Finance come in. One of the nation’s largest bank-held equipment finance companies and an affiliate of KeyCorp (NYSE: KEY), the finance company announced today that it has financed a solar PV installation for Credit Plus, a provider of mortgage credit reporting tools and technology based in Salisbury, Maryland.
Key Equipment Finance provided 100% of the $1.9 million capital lease and construction financing to Credit Plus. Centrosolar America provided the 2,674 panels for the 669 kW DC solar PV system. There was no cash outlay from Credit Plus.
“With this bold investment in solar PV technology, Credit Plus is serving as a model for clean energy savings in its industry,” said Doug Beebe, Vice President, Energy Finance, for Key Equipment Finance. “Green energy financing can provide a total solution so green-minded, cost-conscious businesses can successfully deploy solar PV installations that conserve cash and realize the cost-saving benefits of clean energy technology.”
The panels were installed by Energy Systems & Installation at the Credit Plus home office. The power from the installation has eliminated a large portion of the electricity bill at the Credit Plus Winterplace Parkway location in Salisbury.
Credit Plus is leasing the solar PV system to offset a large portion of its increasingly high energy costs. The company also is benefiting from the 30% federal Investment Tax Credit. Credit Plus is earning additional income from selling the Solar Renewable Energy Certificates (SRECs) generated for each 1,000 kilowatt-hours of energy produced. In addition, once the capital equipment lease ends, Credit Plus will own the system outright and can enjoy unburdened power and millions of dollars in energy savings for the remainder of the system’s 25-to 30-year life span.
“When Credit Plus decided to invest in solar energy, we needed a partner with flexible financing solutions to carry us from the point of initiating construction to the day we flipped the switch and began realizing the benefits of solar power,” said Don Grim, Credit Plus CFO. “Key Equipment Finance’s expertise in energy finance proved integral to the completion of this important green energy project for our business, because it enabled us to make this green energy investment in a way that will actually save us money to invest in other areas.”