Company Finances New Solar Systems

There’s an interesting article in today’s UPI Energy Watch about San Francisco based MMA Renewable Ventures, a compnay that finances renewable energy systems. While the article points out that there are other companies that finance systems or creates purchase power agreements with customers as part of an upfront financing agreement, MRA Renewable Ventures is not “integrated vertically, meaning it’s a pure financial play,” according to Matt Cheney, the company’s CEO.

Since the upfront costs of a solar energy project are still considerable, even after tax breaks are taken into account, having someone else provide the upfront costs allow companies to take advantage of solar energy. The Purchase Power Agreement (PPA) is sort of like a car lease or mortgage, according to Cheney.

According to the article, MMA Renewable Ventures announced last week that it had financed six solar energy projects in the fourth quarter of 2006, at an inventment of $39 million.

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