Several large commercial lenders including Wells Fargo, Morgan Stanley, and Citibank, say they are starting to shift their involvement away from industry practices that they see as risky to their reputations and bottom lines, reports The New York Times. These include investments in oil and gas development, nuclear power, coal-fired electricity generation, oil sands development, fuel pipeline construction and forestry.

Wells Fargo will invest more than $100 million by the end of 2011 to fund the development of solar photovoltaic power projects throughout the U.S. by GCL-Poly, a subsidiary GCL Solar Energy. These solar projects will target a variety of organizations from schools and municipalities to corporations and utilities.  

Wells Fargo is one of several large commercial lenders, including Morgan Stanley and Citibank, which are starting to shift their involvement away from industry practices that they see as risky to their reputations and bottom lines. These include investments in oil and gas development, nuclear power, coal-fired electricity generation, oil sands development, fuel pipeline construction and forestry. 

 

GCL Solar will build and operate the solar power plants, and its customers will purchase the electricity under long-term power purchase agreements (PPAs) at rates equal to or lower than traditional utility rates.

In March of 2009, Wells Fargo & Company (NYSE: WFC) announced that it has financed 125 commercial-scale solar photovoltaic (PV) projects since fall 2007. The projects have 43 megawatts of installed capacity in ten states and can generate enough solar energy to power the equivalent of 6,000 homes.

“Despite the economic downturn, Wells Fargo continues to invest in solar projects across the country because these investments help customers secure reliable, cost-effective power and help businesses access cleaner energy sources,” said Barry Neal, director of Wells Fargo’s Environmental Finance. “We look forward to helping the industry expand even further.”

Wells Fargo has invested in projects hosted by dozens of commercial customers. Recently, Wells Fargo invested in a 450-kilowatt system, developed, installed and operated by SunEdison, on a Staples’ distribution center in southern California. The project’s 1,960 solar panels cover most of the building’s 330,000 square foot roof.  

Wells Fargo has provided more than $2 billion in tax equity financing for renewable energy projects since 2006. That includes funding for 30 wind projects, more than 190 commercial-scale solar projects and 1 utility-scale solar thermal project. In 2008, Wells Fargo surpassed $2 billion in lending for LEED-certified buildings.