K2 Clean Energy Capital LLC has secured property-assessed clean energy (PACE) financing for the construction of a $2.4 million solar and energy-efficiency project at The River at Rancho Mirage. The River, which was acquired by the CheerLand Investment Group in June 2014, is a shopping, dining and entertainment center in California’s Coachella Valley.
K2 Clean Energy Capital developed the project, which includes both a 667 kW DC solar carport system and a new water pumping and control system that will offset over 95% of the facility common area electricity use and will generate CAM charge reductions to the tenants of over $200,000 per year, according to the company. Construction will begin in the first quarter of 2017.
“This project demonstrates our commitment to the environment and to continued modernization at The River. In addition, our tenants will directly benefit from the cost savings achieved,” says Ungar Kung, director of CL Investment Group. “K2 Clean Energy Capital guided us through each step of this process, from the initial energy audit, development of the engineering solutions, contractor bidding and contract negotiation, through to structuring of the PACE and tax equity financing. Following a thorough selection process, we selected Renova Energy Corp, a leading solar provider based in the Coachella Valley, to construct the solar system using American-made SolarWorld PV modules.”
“The PACE financing of this project allows for the pass-through of both the PACE payments as a property tax assessment and the energy cost savings as CAM charges to the tenants of the mall. The net effect to the tenants will be a reduction in costs,” adds Stephen Tsu, co-founder and managing director of K2 Clean Energy Capital. “This project showcases how PACE financing can be utilized for multiple renewable energy and energy efficiency initiatives to create a winning solution for both the property owner and the tenants.”
Funding for the PACE financing was provided by CleanFund Commercial PACE Capital, located in Sausalito, Calif.
“We are delighted to support K2 Clean Energy Capital and The River with CleanFund’s PACE financing of this exciting project,” states Chris Robbins, managing director at CleanFund. “The demand for commercial PACE financing continues to grow rapidly because it provides cost-effective, long-term financing for renewable energy, energy efficiency and water conservation measures for most commercial properties.”