Key Equipment Finance, an affiliate of KeyCorp, has signed an agreement to finance a solar system installation at Rutgers University. SunDurance Energy is serving as the solar integrator for the project, which calls for the installation of more than 40,000 solar panels mounted on canopy structures over two large surface parking areas on the Livingston Campus in Piscataway Township, N.J.
By leasing the solar installation from Key Equipment Finance, Rutgers University will benefit from federal tax incentives, as well as New Jersey's solar renewable energy credits, for this project, Key Equipment Finance says. Those incentives, combined with the electricity savings generated from the solar energy installation, are projected to net Rutgers $28 million over a 20-year period.
As finance partner on this project, Key Equipment Finance is responsible for financing the construction and leasing the installation to the university upon completion of the construction. At the end of the 15-year lease term, Rutgers University will purchase the facility at fair market value.
Construction of the solar canopies is now under way, and the first phase of the installation is expected to be completed this summer.