Key Equipment Finance, an affiliate of KeyCorp, announced it has provided $5.1 million in financing to Wayne, Pa.-based Dynamic Energy Solutions, LLC for a 2.55 (DC) megawatt solar farm near Geneva, N.Y. producing energy for Hobart and William Smith Colleges (HWS).
Dynamic Energy used sale-leaseback financing for the project, which includes a Power Purchase Agreement and allows monetization of the tax benefits, inclusive of the investment tax credit and depreciation. In this solar tax lease structure, Dynamic Energy owns and operates the system and sells the power to HWS.
“By using a solar tax lease, Dynamic Energy is leveraging the tax benefits and available grants to make solar energy possible for HWS,” said Doug Beebe, vice president of energy finance for Key Equipment Finance’s Energy Solutions team, which provides leases tailored to the energy market. “The students who benefit from the energy produced by this solar farm may also learn about the important role financing plays in making these sustainable practices a reality, since HWS uses the solar project as a clean energy learning lab.”
HWS leases the land in the Town of Seneca for the 10-acre solar farm, which was completed in 2017 and features 7,800 solar panels. The project is being combined with a second solar farm completed in 2016 to generate about 5 megawatts of electricity, which provides about 50 percent of the educational institution’s electric needs.
“Dynamic Energy is proud to work with Key Equipment Finance to help Hobart and William Smith Colleges get closer to a goal of climate neutrality by 2025,” said Michael Perillo, CEO. “We congratulate HWS on expanding its notable sustainability efforts with solar farms. These initiatives set a national example of what it means to ‘go green’ in higher education.”
The combined solar farms represent one of the largest state-supported solar installations for a New York college or university.
“These sites are not only generating a significant amount of the colleges’ electricity,” said Thomas Drennen, professor of economics and environmental studies and chair of the entrepreneurial studies program at HWS, “but will also provide experiential learning and curricular opportunities for HWS students.”
The project was supported by a grant from the New York State Research and Development Authority (NYSERDA), a statewide solar incentive program under Gov. Andrew M. Cuomo to increase the number of solar electric systems across the state and meet the mandate for half of the state’s electricity to come from renewable energy sources by 2030.