SUPERIOR, Colo., March 5, 2012 /PRNewswire/ -- Key Equipment Finance, one of the nation's largest bank-held equipment finance companies and an affiliate of KeyCorp (NYSE: KEY) today announced that the company is financing a solar system installation at Rutgers University, The State University of New Jersey. SunDurance Energy, a leading national solar provider, is the solar integrator for the project.
The university is installing more than 40,000 high-efficiency solar panels mounted on canopy structures over two large surface parking areas on the Livingston Campus in Piscataway Township, New Jersey. The 32-acres of solar canopies will generate over nine million kWh of power, or approximately $1.2 million in electricity – equivalent to the annual energy consumption of nearly 1,000 households.
By leasing the solar installation from Key Equipment Finance, Rutgers University will benefit from federal tax incentives, as well as New Jersey's Solar Renewable Energy Credits (SRECs), for this project. Those incentives, combined with the electricity savings generated from the solar energy installation, are projected to net Rutgers $28 million over a 20-year period.
"This project makes good sense economically and environmentally," said Antonio Calcado, Rutgers' vice president for facilities and capital planning. "This is an exciting and innovative project that demonstrates Rutgers' ongoing commitment to energy efficiency and environmentally sound practices."Key Equipment Finance provides flexible equipment finance options to commercial customers and government entities interested in taking advantage of the tax benefits, renewable energy incentives and energy savings available through solar panel installations. As finance partner on this project, Key Equipment Finance is responsible for financing the construction and leasing the installation to the university upon completion of the construction. At the end of the 15-year lease term, Rutgers University will purchase the facility at fair market value. "We work closely with educational institutions across the country and are pleased to see Rutgers University leading the way when it comes to solar power," said David ten Kroode, vice president of Key Equipment Finance's energy finance business. " Rutgers University should serve as an example to other colleges and universities when it comes to recognizing the energy- and cost-savings available through the use of photovoltaic solar installations, and it is our pleasure to work with them on this project." Construction of the solar canopies is underway now and the first phase of the installation is expected to be completed this summer.