Of Special Interest
- Financial wellness affects half of peoples’ mental or physical health, finds report
- Study finds traditional financial institutions embrace Fintech disruption
- Grass is greener for environmentally friendly businesses, finds Barclays
- Prospective homeowners would consider a 40-year mortgage to escape renting, finds Santander
- Millennials’ needs are changing the face of banking industry, says new report
- FS is putting consumer data at risk by failing to protect mobile apps, says Arxan
- A lack of belief in their ability holds 28% women back in work, says Cambridge & Counties
- ‘Which?’ reveals Scotland has lost over a third of its bank branches in eight years
- Next downturn unlikely to be as bad as 2008, according to S&P
- FCA reveals findings from first cryptoassets consumer research
- US consumers favour single mobile app for banking and payments
- Banks suffering major IT shutdowns every day, ‘Which?’ reveals
- The US will be a key offshore centre in 2019, says GlobalData
- Debit industry changes markedly in 10 years of the Debit Issuer Study
- UK's ‘Big Five’ face ‘too big to compete’ as small challengers secure stellar returns
- Banks as vulnerable now as before crash, says new study
- Leverage ratio a constant conundrum for European and US banks, says SNL
9th December 2011
Two major solar power financing deals in the US
MidAmerican Energy Holdings, owned by Berkshire Hathaway has agreed to buy the Topaz solar power generator in California currently under construction. The plant is valued at $2bn and is expected to generate 550mw of electricity, approximately half that of a typical modern atomic power plant. First Solar are building the plant and recently failed to get government guarantees putting the project in doubt. It will operate the plant upon completion.
Last week details of the Bank of America Merrill Lynch financing for SolarCity to develop SolarStrong were confirmed. This is a project to provide solar power for military accommodation in several locations across the US. The project has an approximate cost of $1bn and is expected to generate 300mw of electricity and provide power to over 120,000 homes.
The deals shows the significant change in thinking by some of the most important financial institutions in the United States, as well as the failure of the Obama administration to put its rhetoric regarding renewable energy into effect. The deals are expected to make it much easier for other builders of solar power plants to gain finance in the future. Tax incentives are in place until 2015 to incentivise solar investment. The US government hopes that the technology will become more affordable and risks more acceptable to leave deals after that time to the normal market.