Dive Summary:
- Electricity retailer Direct Energy and clean energy firm SolarCity are teaming up to provide Direct Energy's commercial and industrial (C&I) customers with solar power.
- The companies have set up an investment fund that can finance up to $124 million in solar energy projects
- "[E]ligible Direct Energy C&I customers will be able to utilize solar power with little or no upfront cost," according to a SolarCity press release.
Insight:
While some vertically-integrated utilities and T&D platform owners fear solar (especially residential rooftop solar systems), service providers like Direct Energy are partnering up with solar companies to give customers what they want. Expect utilities to continue to find new ways to expand their business models into the burgeoning solar market, whether that comes through partnerships, acquisitions or any other method.
From the article:
As the rooftop solar business continues its growth, more utilities are starting to believe that they could make good money from it while also stop losing customers to solar service companies that have used leases and power purchase agreements to make solar electricity more affordable for home and business owners. Edison International EIX +0.35%, for example, recentlybought SoCore Energy, which installs and runs rooftop solar projects for commercial and industrial customers. Edison, along with Duke Energy, also took an equity stake in Clean Power Finance, a private company in San Francisco that offers leases or power purchase agreements for solar installers throughout the country to market to their customers.