Key Equipment Finance, one of the nation's largest bank-held equipment finance companies and an affiliate of KeyCorp (NYSE: KEY), announced it has provided $7.2 million in financing to Monolith Solar Associates LLC since 2016 for 17 projects benefitting schools and municipalities. Monolith Solar is a Rensselaer, N.Y.-based provider of best-in-class engineering, design, financing and installation of solar PV systems for residential, commercial, non-profit and municipal clientele.
Developers such as Monolith Solar are using sale leasebacks to finance projects that include a Power Purchase Agreement (PPA), allowing monetization of the tax benefits, inclusive of the investment tax credit and depreciation. In this structure, solar developers own and operate the system and sell the power at a discounted rate to the school districts and municipalities.
"Monolith Solar is a leader in using sale-leaseback financing for distributed solar installations for municipalities and school districts that have a unique opportunity to monetize investment tax credits to make the project financeable," said Doug Beebe, vice president, energy finance, Key Equipment Finance, which offers energy equipment finance solutions to a range of business types and industries. "Customers of Monolith Solar benefit from reduced energy costs, which helps them retain funds for other needs while participating in clean energy practices."
Founded in 2008 by two entrepreneurs who put solar on their own houses, Monolith Solar moved on to power the Rensselaer Library, Union College and KeyBank before growing into one of the largest solar installers in the state of New York.
"As a longtime KeyBank customer, Monolith Solar naturally turned to the energy solutions team at Key Equipment Finance to address our growing customer needs with specialized expertise in renewable energy financing," said Mark Fobare, co-founder and CEO of Monolith Solar. "The relationship has enabled us to leverage Power Purchase Agreements in financing transactions that monetize federal tax incentives, as well as New York State Energy Research and Development Authority (NYSERDA) grants, and partner with schools and municipalities to pass on savings in the form of reduced energy costs."
This sampling of the projects financed through the Monolith Solar and Key Equipment Finance partnership will generate a combined $2.1 million in energy savings based on 20 years of production:
"Our partnership with Key Equipment Finance has produced financing structures that scale easily and follow industry trends of lower costs per watt," said Steven Erby, co-founder, president and COO of Monolith Solar. "The projects also provide monitors so the schools can track the clean energy savings they generate, which serves as a teaching tool for students."
The projects benefit from grants from NYSERDA, a state program committed to advancing the scale-up of solar and moving toward a sustainable, self-sufficient solar industry.
Key Equipment Finance | http://www.keyequipmentfinance.com