SolarCity Corp (NASDAQ:SCTY) will partner with Google Inc (NASDAQ:GOOGL) to install smart thermostats and monitoring software that will increase energy efficiency in solar powered homes.
SolarCity will deploy 10,000 Google’s nest to its rooftop power customers in California. Nest thermostats are based on owner’s schedule and preference and program themselves to reduce energy use.
Ben Bixby, the Director of Nest Energy Products, stated that SolarCity customers will be able to take advantage of the integration of solar systems and smart thermostats. With this move, it is hoped that SolarCity becomes a part of Works with Nest program.
With the 10,000 homes that will be given smart thermostat, Nest expects to understand the implications of adding a large number of self-generating homes to the system. At the same time, SolarCity will learn how connected homes respond to fluctuations in output to maximize energy savings.
Attaching the thermostat to rooftop solar will reduce energy consumption from the grid. The home will be cooled by using power from the solar array, hence reducing energy consumption from the grid.
The deployment will help the company to better manage energy use and later use it for other gadgets like pool pump and hot tubs.
There is a boom in U.S. rooftop systems due to declining solar panel costs and leasing programs which do not need upfront payment by customers. The rooftop system has increased by over 50% in the last year.
Utilities in some state have sought added fees from households that generate their energy so as to fund a grid that gives energy when solar panels do not work.
The partnership between SolarCity and Google is the latest in string of vertical integration and product diversification by SolarCity Corp (NASDAQ:SCTY). SolarCity is the dominant rooftop solar installer in U.S. and has over one-third of the market. The Solar City has been diversifying its portfolio and has tried things like module manufacturing and loan finance.
