Duke Energy Generation Services (DEGS), Integrys Energy Services and Smart Energy Capital have formed a partnership to build and finance distributed solar projects throughout the U.S.
Through the partnership, DEGS and Integrys will focus on jointly owning rooftop and smaller ground-mounted photovoltaic solar projects that deliver electricity to commercial, government and utility customers under long-term power purchase agreements. Smart Energy Capital will develop the projects and arrange the financing.
DEGS and Integrys will equally supply the necessary equity capital for construction and ownership of the distributed solar projects. Over the next two years, the companies intend to invest up to $180 million in total project capital. Individual project size is expected to be 500 kW and up. DEGS and Integrys will be responsible for operating and maintaining the projects.
Smart Energy Capital will work with its strategic origination partners, including CB Richard Ellis (under the name CBRE Solar) and Tremco Roofing. The financing structure of the partnership enables DEGS and Integrys to utilize all available federal tax benefits associated with the distributed solar projects, the companies note.
The partnership will focus on distributed solar solutions that produce energy close to where it is used, rather than at centralized power plants, says Greg Wolf, DEGS senior vice president and head of the unit's commercial solar business.
SOURCE: Duke Energy
