A Sunny, and Interest Free, Solution for Palo Alto

Bank of America enabled the City of Palo Alto to become the first municipality in California to take advantage of an innovative federal tax credit program to promote the generation of electricity from clean and renewable energy sources. Palo Alto's Clean Renewable Energy Bond, or CREB, provided the city with funding to purchase, construct and install solar power equipment with a capacity of approximately 225 kilowatts at three city facilities. This is enough energy to power over 50 homes annually. As a result, Palo Alto has interest-free funding to generate clean, renewable electricity at the Lucy Evans Baylands Nature Interpretive Center, Cubberley Community Center and the Municipal Services Center.

Bank of America offers tax advantaged solar project financing solutions on a stand-alone basis or in combination with other debt and equity products. In Palo Alto, Bank of America receives a federal tax credit to offset interest income normally associated with municipal financing. The city preferred that Bank of America purchase the CREBs at a discount, in order to receive a 0% coupon and principal-only payments. Through this program, the City of Palo Alto is able to affordably implement an important renewable energy project, utilizing one of Bank of America's many solutions for clients in this growing market. Bank of America's investment in solar power and other renewable energy projects increases the use of clean alternatives to fossil fuels, reduces and stabilizes the cost of electricity to our customers, lowers carbon emissions and promotes environmentally sustainable buildings.


Quick Facts

  • Bank of America enabled the City of Palo Alto to become the first municipality in California to take advantage of an innovative federal tax credit program.
  • The Clean Renewable Energy Bond (CREB) provided funding to purchase, construct and install solar power equipment with a capacity of approximately 225 kilowatts at three city facilities.
  • Palo Alto has interest-free funding to generate clean, renewable electricity at the Lucy Evans Baylands Nature Interpretive Center, Cubberley Community Center and the Municipal Services Center.
  • Bank of America receives a federal tax credit to offset interest income normally associated with municipal financing in Palo Alto.