Hawaii, United States [RenewableEnergyWorld.com] Hoku Solar and and United Fund Advisors (UFA) have established an investment company intended to provide financing for photovoltaic power systems to be installed and operated in the State of Hawaii by Hoku. The company had previously announced its selection by the Hawaii Department of Transportation (DOT) to design, engineer and install PV power systems at airports across the state.
Under the terms of its agreement with UFA, Hoku will assign its power purchase agreements to the special purpose entity, Hoku Solar Power I LLC, that has been created to own and operate each system, and that will sell the electricity generated by the PV power systems to DOT at a predetermined rate over a contract period of 20 years.
Hoku and UFA confirmed that the financing is expected to be sufficient for Hoku to complete all seven planned PV installations at DOT facilities on Kauai, Maui and Hawaii Island, a total of nearly 1 megawatt of solar power. These projects are the first major PV installations on Hawaii government-owned facilities, and among the largest third-party financed PV projects in the state.
“Hoku is pleased to have established this partnership with UFA,” said Dustin Shindo, chairman and chief executive officer of Hoku Scientific. “Power purchase agreements offer a way to bring the benefits of clean solar energy to governments, municipalities and businesses with no upfront cost, while allowing investors to take full advantage of the associated investment tax credits. It really is a win-win for all involved.”