Financial services company Wells Fargo & Co has signed an agreement to provide $120m funding for US solar photovoltaic (PV) distributed generation power projects.

The solar PV power projects will be developed by SunEdison over the next year.

As per the power purchase agreement model, SunEdison builds, manages, and operates the solar systems while its customers buy the renewable energy.

Financing provided by Wells Fargo will enable SunEdison to provide a clean and reliable source of electricity to its customers.

Wells Fargo Environmental Finance Group head Barry Neal said the solar projects developed by SunEdison will help businesses and public entities better control their electricity costs, while expanding the use of renewable energy throughout the US.