The nation’s largest electric company is expanding its solar power holdings with an outfit that installs solar arrays for companies, governments and utilities.
Duke Energy said Monday it’s buying a majority interest in REC Solar, based in San Luis Obispo, California. Charlotte-based Duke Energy also will spend up to $225 million to install REC Solar projects, with Duke selling fixed-price power they generate to the property owner under long-term contracts.
“This arrangement will build on Duke Energy’s mission of giving commercial customers solutions that reduce energy costs and achieve their sustainability goals,” said Marc Manly, Duke Energy executive vice president and president of Duke’s Commercial Portfolio.
“With its long track record and commitment to quality, safety and customer service, REC Solar has demonstrated years of success in delivering solar power,” added Manly. “Through this arrangement, REC Solar will be better equipped to expand its offerings to commercial customers and provide an array of cost-efficient energy solutions.”
REC Solar says it built a Robeson County solar farm in 2012 that sold power to Raleigh-based Progress Energy, which has merged with Duke Energy.
“We plan to extend the benefits of clean, distributed energy solutions to previously underserved small and medium-sized businesses,” said Allen Bucknam, chief executive officer of REC Solar. “The Duke Energy relationship realizes our strategy to be the one-stop shop for commercial solar by securing a predictable and streamlined customer financing process.”
REC Solar says it offers simplified customer financing, including leases and power purchase agreements that “provide customers with immediate savings.”
“By lowering upfront costs and reducing the complexity of going solar, our aim is to accelerate commercial solar growth and provide end-to-end energy solutions to businesses, governments and educational institutions across the United States,” said Bucknam.
Duke Energy said last year it is spending $500 million to build three solar-power facilities and buy power from five more to meet requirements that 6 percent of its 2015 retail sales come from renewables.
