Weeks after the successful deal to buy First Wind for $2.4 billion, SunEdison, the American manufacturer of solar panels, has signed power purchase agreements (PPA) with 16 separate public housing authorities across Massachusetts.
The solar installations at more than 10 locations in Massachusetts will sell net metering credits under a 20-year PPA to the housing authorities including: New Bedford, Brockton, Somerville, Barnstable, Fairhaven, Fall River, Gardner, Leominster, Northampton, Plymouth, Somerset, and Winchendon.
Net metering credits allow customers to realize the financial benefits of solar energy even when the system is not located at the customer’s site, the company said.
Delivering 39.5 MW in peak capacity, the PPA is expected to deliver $60 million in utility bill savings to Massachsetts low income housing community, SunEdison said.
The agreement marks the increasing acceptance of solar energy to address the energy deficits of the unprivileged section of the society.
The solar systems will be co-owned and operated by SunEdison and its financing partners, including TerraForm Power, a SunEdison Company.
SunEdison recently also formed a 50-50 joint venture with Renova Energia to develop 1GW of utility scale solar plant in Brazil.
The contracts were awarded as part of the 2014 Reserve Supply Auction (2014 LER), the first renewable energy auction in Brazil which stressed on the need for solar power plant capacity.
During the third quarter of 2014, SunEdison recognized GAAP revenue from solar projects totaling 95 MW, up from 90 MW in the 2014 second quarter and 42 MW in the 2013 third quarter. During this period, 251 MW of additional projects were constructed and held on the balance sheet.
Rajani Baburajan