JPMorgan Chase & Co. (NYSE: JPM) has always been an innovator in the field. The House of Dimon pride’s itself on smart investments and sound business decision making, and along the way the firm has quickly become the model financial institution. Today, the firm furthered that legacy.
MEMC Electronic Materials Inc. is becoming a big player in the solar energy field through their SunEdison business unit. Today, the firm reached an important milestone, securing a $60 million investment from JPMorgan Chase & Co. for U.S. solar power projects being developed. These funds provide an important cash flow stream to a company growing aggressively in a highly competitive market.
This action from JPMorgan also marks the first step in the distributed solar power arena. Based in Beltsville, Maryland, SunEdison is expected to use the money to build and operate photovoltaic power plants, and also use some funds to subsidize the sales of energy produced as the firm continues to grow.
In a separate announcement, SunEdison said it plans to build and operate three solar projects in the San Antonio, Texas area and deliver power to CPS Energy, a municipal utility company. The company has long held the goal to generate 100 megawatts of solar power by 2020, and the actions taken recently go along way to making that dream a reality. The projects announced today are expected to break ground next year, and should account for nearly 30 megawatts in production.
Concurrently, it is a smart investment for JPMorgan. As the banking sector struggles to rebuild it’s image, green energy is a smart, and simultaneously profitable investment. Perhaps banks across the street should take notice, and make similar investments in sustainable energy development.
