Boston, MA 05/29/2014 (wallstreetpr) – SolarCity Corp (NASDAQ:SCTY) received a financial booster to increase its residential solar installation. Solar projects are attracting third-party financing as cost of solar power falls and more residential customers move to cut their electricity bills by adopting solar power.
In the latest third-party financing, SolarCity, a leader in the U.S. residential solar installations, received $100 million from Capital One Financial Corp. (NYSE:COF). The money will allow Solar City to make more residential solar installations without upfront payment from the customers.
SolarCity serves 15 states and provides 25 percent of solar installations to new homes. The potential in the solar sector and the leadership position of SolarCity are seen as some of the attributes that attracted the $100 million investment from Capital One.
Although Capital One boasts $3.5 billion in energy loan portfolio, the bank lacked in renewable energy sector, and the latest investment in SolarCity marks its first venture in renewable energy.
Excitement In Solar Ventures
Third-party financing for solar projects is becoming widespread. At a recent event dubbed Banking on Solar conference, representatives from the solar industry, non-governmental organizations and banks discussed various ways to increase support for solar companies. The need to curb global warming by adopting friendly energy solutions is seen as the main driver for excitement in solar projects.
Solar Discounts
Earlier this week, SolarCity Corp (NASDAQ:SCTY) announced a discount program that it expects to boost its sign-ups for rooftop solar installations amid competition. The company announced an online limited solar discount offering that would see customers earn $400 in discounts. The company has partnered with Groupon Inc (NASDAQ:GRPN) in the discount offering deal. The discount translates to about four months of free electricity and customers also enjoy free rooftop solar installation.
SolarCity Corp (NASDAQ:SCTY) posted its 1Q2014 earnings earlier this month. The company earned 52 cents per share, beating the consensus estimate of 39 cents. Revenue came in at $223.80 million, ahead the consensus estimate of $218.26 million.
