Borrego’s Edwards installation could be beginning of long military partnership

Borrego’s Edwards installation could be beginning of long military partnershipBorrego Solar’s new 3.4-megawatt solar installation at Edwards Air Force Base in San Diego, Calif., is not likely to be the company’s last military installation.

Borrego announced the completion of its Edwards Air Force Base installation today.

“This is the very first [military base solar project] funded through private sources,” said Jon Gensler, a project developer for Borrego. “We were able to make it work with a 10-year [power purchase agreement].”

The base will be able to decide what it wants to do with the solar installation at the end of that 10-year contract. It could extend the contract, buy the system outright or Borrego could pack it up and take it away, Gensler said.

The base did not have to pay anything to set up the solar installation that will supply more than 6 percent of its total electric demand. Borrego Solar has created a comprehensive financing model, in which it was able to front the entire cost of the system in exchange for that 10-year power purchase agreement.

Borrego has been working in the solar industry for 30 years, Gensler said. But it’s just since the company established its power purchase financing program in 2009 that it’s experienced tremendous growth.

The company has seen a dramatic influx in government contracts and expects to see even more.

There is an initiative to have all military bases get at least 25 percent of their power from renewable source by 2025.

“For the military it’s fundamentally about energy security and removing themselves from the vulnerability caused by dependence on the grid,” Gensler said.

Even domestic military bases have experienced power failures from downed trees knocking out power lines, and they know the grid is vulnerable to hackers.

“Right now, they’re not really on track for that 25 percent,” Gensler said.

He said it would take about $5 billion to get all of the bases to that level of energy independence.

“They recognize that is largely going to need to come from the private sector to meet that mandate,” Gensler said. “That’s one of the drivers and it’s probably going to be one of the biggest drivers for growth over the next decade.”

Military contracts will likely contribute dramatically to Borrego’s future growth, he said. And the company is happy to have its first military project online.