- The largest solar installer in the country has partnered with a global bank to finance more than $347 million in solar energy projects, split between a nationwide residential fund and a California business fund.
- SolarCity said the first fund is expected to finance more than $284 million in residential solar projects across the country, while the second fund is expected to finance approximately $63 million in projects for small and medium-sized businesses in California.
- Citi partnered on the fund's creation; the bank intends to invest $100 billion in environmentally-friendly projects within the next decade.
It's been a big September for SolarCity's finances. Earlier this month, the company closed on an innovative cash equity transaction, and the announcement with Citi this week means homeowners and some businesses can install solar systems with no up-front costs. The company also announced plans to expand its Mexico operations, planning to invest $1 billion over a five-year span, despite trimming solar installation expectations after a rather dismal quarterly report.
"We highly value repeat investors given our consistent pace of solar asset origination," SolarCity Chief Financial Officer Radford said in a statement. "This latest investment with Citi is a testament to how our solar assets continue to perform in the field, and in the capital markets."
On Sept. 12, the company announced that it raised $305 million in its second cash equity transaction. A private investment fund affiliated with Quantum Strategic Partners Ltd. and advised by Soros Fund Management LLC provided the equity investment in a portfolio of residential, commercial and industrial solar projects. The transaction also included a fully amortizing, 18-year loan that was syndicated to five high-quality institutional investors.