Wells Fargo & Company (NYSE: WFC) and SunEdison LLC, a subsidiary of MEMC Electronic Materials (NYSE: WFR), announced an agreement by which Wells Fargo subsidiaries will invest up to $120 million to fund U.S. solar photovoltaic distributed generation power projects developed by SunEdison over the next year. The program builds on a SunEdison solar investment fund established in 2007 in which Wells Fargo invested more than $200 million in approximately 150 solar projects developed by SunEdison in eight states.
"Wells Fargo is excited to continue our relationship with SunEdison and expand our commitment to grow the U.S. solar market," said Barry Neal, head of Wells Fargo'sEnvironmental Finance Group. "The solar projects developed by SunEdison will help businesses and public entities better control their electricity costs, while expanding the use of renewable energy throughout the U.S."
Financing provided by Wells Fargo will enable SunEdison to cost-effectively provide a clean and reliable source of electricity to its customers, including corporations and municipalities. Under the power purchase agreement (PPA) model, SunEdison builds, manages, and operates the solar systems while its customers buy the energy produced at prices at or below retail rates. This allows customers to avoid upfront costs typically associated with solar projects.
"SunEdison makes investing in solar a smart choice," said Chris Bailey, SunEdison vice president of Project Finance, North America. “SunEdison has the experience and know-how that project investors and customers trust. SunEdison looks forward to growing its relationship with Wells Fargo as we continue to make solar a reality for our customers across the nation."
SunEdison, a leading worldwide solar energy services provider, has deployed over 400 solar projects totaling over 160MW in North America, and has developed over 100MW outside of North America.
Wells Fargo has provided more than $2 billion in tax equity financing for renewable energy projects since 2006, including funding for 30 wind projects, over 200 commercial-scale solar projects and one utility-scale solar thermal project.