Integrys Energy Services, Duke Energy Generation Services Partner on Distributed Solar

Integrys Energy Services, Duke Energy Generation Services, and Smart Energy Capital announced yesterday the launch of a partnership to build and finance distributed solar projects throughout the United States.

Through the partnership, Duke Energy Generation Services and Integrys Energy Services will focus on jointly owning rooftop and smaller ground-mounted photovoltaic (PV) solar projects that deliver electricity to investment-grade commercial, government and utility customers under long-term power purchase agreements. Smart Energy Capital will develop the projects and arrange financing.

Duke Energy Generation Services and Integrys Energy Services believe the majority of PV solar growth over the next several years will involve commercial-scale ground-mounted and rooftop applications. While Duke Energy Generation Services and Integrys Energy Services will continue to independently develop commercial solar projects pursuant to their respective strategies, "this partnership will serve as a way to cooperatively boost growth in an attractive segment of the solar market," the companies said.

"We have invested more than $65 million in 20 different distributed generation solar projects across the U.S. with a combined capacity of more than 10 megawatts," said Joel Jansen, managing director and head of energy assets at Integrys Energy Services. "Partnering with DEGS and Smart Energy Capital enables us to expand our presence in this market in an efficient, strategic manner."

Duke Energy Generation Services and Integrys Energy Services will equally supply the necessary equity capital for construction and ownership of the distributed solar projects. Over the next two years, the companies intend to invest up to $180 million in total project capital. Individual project size is expected to be 500 kilowatts and up, depending on the needs of the customer. Duke Energy Generation Services and Integrys Energy Services will be responsible for operating and maintaining the projects.

Smart Energy Capital will work with its strategic origination partners, including CB Richard Ellis (under the name CBRE Solar) and Tremco Roofing, in helping customers develop the projects. The financing structure of the partnership enables Duke Energy Generation Services and Integrys Energy Services to monetize all available federal tax benefits associated with the distributed solar projects.