GE Unit Partners with SunPower on California Solar Projects

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http://www.reuters.com/article/pressRelease/idUS105899+07-Jan-2008+BW20080107

GE Unit Partners with SunPower on California Solar Projects

Mon Jan 7, 2008 8:00am EST

Multi-Project Financing Agreement Streamlines Solar Power System Implementation

STAMFORD, Conn. & SAN JOSE, Calif.--(Business Wire)--GE Energy Financial Services, a unit of GE (NYSE: GE), announced today that it is partnering with SunPower Corporation (NASDAQ: SPWR) -- a Silicon Valley-based manufacturer of high-efficiency solar cells, solar panels, and solar systems -- to provide financing for five California solar power projects. The projects, totaling approximately eight megawatts, include a system for Toyota Motor Sales' Parts Center that will be the largest single-roof solar power installation in the United States. The companies are also collaborating on solar projects for HP, Agilent and two county and regional agencies.

Formed in the spirit of GE's ecomagination program, the joint venture streamlines the implementation of large commercial and public solar power systems. It also helps California meet the goals of the California Solar Initiative to generate 3,000 megawatts of new, solar-produced electricity by 2017.

GE Energy Financial Services is acquiring a majority equity interest in the five solar photovoltaic projects, which SunPower will design and build, operate and maintain. GE Energy Financial Services will finance and own the systems under the SunPower Access power purchase agreement program, which allows customers to take advantage of the environmental and financial benefits of solar power with no upfront capital costs. The solar electricity will be competitively priced against retail rates, providing customers a long-term hedge against rising peak power prices. Construction of the projects is scheduled to begin in February and be completed by the end of the year. Financial details of the transaction were not disclosed.

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"Aggregating several projects into one portfolio gives us financial scale to realize the advantages of project finance structuring," explained Kevin Walsh, managing director and leader of renewable energy at GE Energy Financial Services. "In addition, this transaction diversifies our renewable energy portfolio with more solar assets and supports ecomagination, GE's program to help its customers meet their environmental challenges while expanding its own portfolio of cleaner energy products."

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