A 5.99-megawatt solar array for which Key Equipment Finance provided financing is due to begin commercial operation in Deerfield, MA this month.

The ground mount array comprises 18,720 high-efficiency solar panels and sits on about 23 acres of privately-owned land. In its first year, the array is projected to produce more than 7,200 MWh of electricity. Key Equipment Finance partnered with Kenyon Energy, The Town of Deerfield and Lake Street Development Partners on the project.

The solar array is the first to be installed in South Deerfield and could be groundwork for future solar energy projects. The agreement sets a fixed property tax rate on the development over a span of 20 years, instead of it fluctuating based on a yearly valuation. The Town of Deerfield is expected to net a total of $1.24 million from this tax.

“We have been proud to work with Lake Street Development Partners, along with Key Equipment Finance, and The Town of Deerfield to complete this renewable installation,” said Ray Gonzalez, president of Kenyon Energy, which is a developer, owner and operator of solar energy projects. “These efforts are part of the town’s long-term strategy to cut the environmental footprint and deliver long-term value to the businesses and communities where people live and work.”

Key Equipment Finance provided financing in the form of a sale leaseback supported by a Power Purchase Agreement (PPA). With the closing of financing, Bay4 Energy Services will provide asset management services including operations and maintenance for the life of the system.

“Key Equipment Finance’s long-term partnership with Kenyon Energy enables them to monetize tax benefits, including investment tax credit and depreciation,” said Doug Beebe, vice president of energy finance for Key Equipment Finance. “Creative financing solutions like this make it possible for Kenyon Energy to own and operate solar projects and sell the power at a discounted rate to cities and towns like Deerfield, to support their sustainability goals.”