February 2, 2010
San Bernardino, CA – The San Bernardino Redevelopment Agency (RDA) has been an NDC client for 25 years, with NDC Field Director Scott Rodde providing a full range of NDC development assistance services, including evaluating credit, negotiating transaction terms, structuring finance and reviewing development opportunities. This year, San Bernardino began an initiative to address California’sRenewables Portfolio Standards (RPS), adopted by the State to reach its goal of obtaining 20% of its energy from renewable sources by the year 2010.
The State of California is encouraging its cities to assist in the adoption of renewable energy systems for municipal facilities. The RDA, with Scott’s direction, researched financing options and potential partners for a demonstration project that will be the first of several.
The RDA issued a request for proposals to design and build a system for its multi-tenant office building that would reduce the current utility bill by 50%. SPG Solar of Novato, California was selected for their design of a highly efficient Sanyo solar PV module that would utilize the least amount of space and generate the maximum amount of clean power possible.
With the contractor selected and the terms negotiated, the focus was on financing the project. Using the federal tax credit, accelerated depreciation and a Southern California Edison utility rebate, Rodde structured a deal with two financing partners, Greystone and US Bank, to provide the necessary equity. The RDA contributed a low-interest loan to complete the financing package.
The financing structure will allow the RDA the greatest economic benefit while also providing them long-term ownership and the ability to meet the State of California’s renewable energy mandate. The RDA will achieve an 8% return on their investment over the warranted life of the solar equipment. They will reach breakeven of their investment in the first 10 years, and secure a hedge against the rising cost of utility electric.
The system received permission to operate from Southern California Edison on December 30, 2009, and immediately began producing power for the RDA.
RDA and NDC: celebrating a relationship twenty-five years strong, and together, meeting the energy demands of tomorrow.