SunEdison has entered into an agreement with Los Angeles-based solar developer PermaCity to develop, build and operate 22 MW 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. When completed, SunEdison expects to grant TerraForm Power an option to acquire these projects.
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 theirheir 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 MW commitment. SunEdison will provide financing, 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.
"PermaCity and SunEdison are undertaking an exciting initiative to add 22 MW 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 racking system.
Building owners in the LADWP service area who are interested in these projects can contact Fit50sales@permacity.com for more information.
In addition to the 22 MW of rooftop solar, the Beacon Bundled Solar contract awarded to SunEdison in 2014 calls for the company to develop 88 MW 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.
(Graphic: SunEdison's website)