Key Equipment Finance Provides Equipment Financing of Photovoltaic Solar Panels for Project at Princeton University
Solar installation from SunPower will provide 5.5 percent of the campus' electrical needs, reduce electric costs by eight percent per year
SUPERIOR, Colo., Feb. 2, 2011 /PRNewswire/ -- Key Equipment Finance, one of the nation's largest bank-held equipment finance companies and an affiliate of KeyCorp (NYSE: KEY) today announced that the company is financing a solar system installation for SunPower Corp (Nasdaq: SPWRA, SPWRB) customer, the Facilities Department at Princeton University. The system, comprising 16,500 photovoltaic panels on 27 acres, is expected to be one of the largest single solar power installations at a U.S. college or university.
The PV solar project financed by Key Equipment Finance is expected to generate eight million kilowatt-hours per year, enough to power more than 700 homes or, at Princeton, enough to meet 5.5 percent of the total annual campus electrical needs. The University will sell the Solar Renewable Energy Credits (SRECs) during the term of the lease to help pay for its financing. Upon lease termination, the project is expected to reduce the University's carbon footprint by decreasing its dependence on fossil fuels and reducing its annual electrical costs by eight percent.
"We are excited by the prospect of realizing the economic benefits of the system and the environmental benefits of solar once we retire the SRECs, while also taking a leadership role in advancing renewable energy in a way that could work for many other educational institutions," said Michael McKay, Princeton's vice president for facilities.
Key Equipment Finance has a long-standing relationship providing flexible equipment finance options to SunPower commercial customers and government entities for the construction of SunPower solar power systems. By offering financing as part of the sales process, SunPower is able to streamline the purchase process for customers, combining the system and installation costs into one predictable monthly payment and allowing qualifying customers to take advantage of available tax benefits and renewable energy incentives.
"Key Equipment Finance has really taken the lead when it comes to offering flexible financing options in the energy industry," said SunPower managing director Tom Leyden. "We're pleased to have them as part of the team on the installation project at Princeton University, and to partner with them to meet the finance needs of our clients across all industries."
"Both Princeton University and SunPower have outstanding reputations as organizations that are leading the way in their respective disciplines and it is our pleasure to work with such esteemed and forward-thinking institutions," said David ten Kroode, vice president of Key Equipment Finance's energy finance business. "It is our hope that the project at Princeton will serve as a national model and that colleges and universities across the U.S. will soon recognize the same energy- and cost-savings through the use of photovoltaic solar installations."
About Key Equipment Finance
Key Equipment Finance is an affiliate of KeyCorp (NYSE: KEY) and provides business-to-business equipment financing solutions to businesses of many types and sizes. The company focuses on four distinct markets:
- businesses of all sizes in the U.S. (from small business to large corporate);
- equipment manufacturers, distributors and value-added resellers worldwide;
- federal, provincial, state and local governments as well as other public sector organizations; and
- lease advisory services for larger structured equipment needs including single investor and leveraged leases, securitizations, and structured debt.
Headquartered outside Denver, Colorado, Key Equipment Finance manages nearly $11 billion in assets and originates approximately $3 billion of equipment annually. The company has major management and operations bases in Albany, New York; London, England; Hong Kong, China and Sydney, Australia. The company, which supports clients in over 40 countries, employs approximately 700 people worldwide and has been in the equipment financing business for over 35 years. Additional information regarding Key Equipment Finance, its products and services can be obtained online at www.KEFonline.com.
Cleveland-based KeyCorp (NYSE: KEY) is one of the nation's largest bank-based financial services companies, with assets of approximately $94 billion. Key companies provide investment management, retail and commercial banking, consumer finance, and investment banking products and services to individuals and companies throughout the United States and, for certain businesses, internationally. For more information, visit www.key.com. KeyBank is Member FDIC.