-- SunEdison and PermaCity to Lease Publicly and Privately Owned Rooftops to Complete Project, Creating Income Opportunity for Local Property Owners
-- SunEdison expects to grant TerraForm Power an option to acquire these projects at completion
SunEdison, Inc. (NYSE: SUNE), the world's largest renewable energy company, today announced an agreement with Los Angeles-based solar developer PermaCity to develop, build and operate 22 megawatts of rooftop solar as part of the Beacon Bundled Solar contract that the Los Angeles Department of Water and Power (LADWP) awarded to SunEdison in July 2014.
The Los Angeles Department of Water and Power program requires the inclusion of local developers to maximize the economic benefits of these solar projects. SunEdison chose to work with PermaCity, a local LA-based developer, because of their track record of performance and their expertise in constructing solar systems. SunEdison and PermaCity will lease publicly and privately owned roof space in the LADWP service area to fulfill the 22 megawatt commitment. SunEdison will provide financing, high-performance SunEdison solar panels, and procurement and engineering expertise for the projects. PermaCity will manage the construction of the projects in cooperation with a SunEdison operations team.
SunEdison expects to grant TerraForm Power, Inc. (Nasdaq: TERP), a global owner and operator of clean energy power plants, an option to acquire these projects at completion.
"The City of Los Angeles and the Los Angeles Department of Water and Power have presented the local community with a fantastic opportunity to earn extra income by utilizing their roof space," said Rafael Dobrzynski, SVP - General Manager Commercial & Industrial Distributed Generation at SunEdison. "The Los Angeles Department of Water and Power program supports the use of local developers and we are proud to be working with PermaCity on this project."
"PermaCity and SunEdison are undertaking an exciting initiative to add 22 megawatts of rooftop solar projects across Los Angeles," said Jonathan Port, Chief Executive Officer of PermaCity. "We're looking to lease both publicly and privately owned roof space in order to achieve our goal and look forward to working with the residents, businesses, and public agencies of Los Angeles to make it a cleaner city."
The properties chosen in this program are eligible for financial incentives and property upgrades that can increase cash flow and property value. Once a system is installed, owners will receive an annual lease payment funded by the sale of the electricity generated by the solar panels. In lieu of annual lease payments, other attractive incentives are available at zero cost, such as roof repairs, a net metering solar installation to offset and reduce current electricity bills, or energy efficiency upgrades and building control systems. The systems will be installed using PermaCity's innovative, non-penetrating racking system.
In addition to the 22 megawatts of rooftop solar, the Beacon Bundled Solar contract awarded to SunEdison in 2014 calls for the company to develop 88 megawatts of utility-scale solar power at the Beacon site in Kern County, which will be completed in 2016. The combined output of these projects will help Los Angeles reach its goal of sourcing 25% of energy needs from clean sources by 2016 and 33% by 2020. These projects will generate 700 prevailing wage jobs, and PermaCity is planning to hire veterans and youth to work in high paying, permanent positions in the growing solar industry.
