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SolarCity Makes Major East Coast Acquisition

By Stephen Lacey, Editor
February 17, 2011 | 3 Comments

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Vermont -- It's been a big month for leading solar-services company SolarCity. Weeks after closing a $40 million fund with Citi to expand residential installation/financing options, the company acquired the residential solar business of top East Coast installer groSolar.

This follows the acquisition of the solar business of Clean Currents, an installer based in the Mid-Atlantic region. The acquisitions allow SolarCity to enter burgeoning Northeastern markets like Massachusetts and New York and Mid-Atlantic markets like New Jersey and Pennsylvania.

groSolar will continue building its distribution business and commercial installations under the groSolar brand. SolarCity will take over the residential business and integrate its solar leasing options. The purchase brings SolarCity's services into 10 states nationwide.

To top off the February expansion news, SolarCity brought in Mark Roe, the former senior director of world services for Apple, to be vice president of operations. While at Apple, Roe oversaw international product introductions and product-delivery logistics – an important set of skills to bring to a company expanding as quickly as SolarCity.

This is yet more proof of the dominance of residential solar services like leases and power purchase agreements. Other companies like SunRun, Sungevity and new-entrant BrightGrid have made similar expansions and funding announcements over the past year.

And in surprise news this week, after four years of silence, the controversial early solar-lease company Citizenre announced it had raised $20 million in construction-level debt to install systems under its rental program in California. The company says it's out to compete with the heavyweights in the sector.

With developments like the ones we've seen this month, it's going to be increasingly hard to catch up with the incumbents.

Solar Energy

3 Reader Comments

Comment
1 of 3

PamelaCargill

February 17, 2011

Open Memo to solar installers in the Northeast: get ready to compete with SolarCity. 2011 guaranteed is going to be a banner year in the maturing of the East Coast marketplace for residential solar.

Comment
2 of 3

neveilb

February 17, 2011

This does not matter one Bit. Ask any home-owner who solar city is, gro-solar or the other 700 installation firms in PA and they have no clue still. This is PA people are smarter, once everyone understands leasing is a joke, not to mention a serious liability issue for a homeowner, this will break-down. There is a reason Gro-Solar and Ankeena got out of this. It does not work out over time. Leasing firms exaggerate the grid cost over the years, they want to show paying a fixed amount is the win, "a little less then the grid" Dereg hurt them with this, client can save some without getting solar.

Ask the leasing firm will they back up in writing if the grid cost does not rise that high? Will they also replace your roof when you tell them take this off I am moving? How about the new homeowner coming in to buy the house, imagine being a realtor and saying this house also comes with a solar system you have to take the lease over on, hope you have a 720 credit score because you just got a Mortgage also. Plus its 15 yrs old and the roof underneath needs to be replaced the home inspector said, hope you have about $8,000 for the solar to be taken down then re-installed, Make sure they factor that into the lease. Sounds like a win to me... You just lost everything possibe on profit. This should not be hard at all for every solar installation firm to go against and stop the big boys and girls of solar from crushing us. Please stick together; this is very easy to plug holes all over. A PPA is also a lease, Gross quote just divided over /KWHR production, lease is KWHR/Time.

ROI with Solar is only possible avoiding long term finance charges,leases and all the other things NonSolar installers think of. If your credit is good enough to lease why would you not just take a loan from a bank or a line? Tons of local banks are doing solar loans.

Neveil

Comment
3 of 3

douglas-prince-175356

February 18, 2011

Neveil - What the hell are you yammering about? You obviously have no grasp of how PPAs or PACE programs work. And if you think any solar firm is going to slap up a bunch of panels without first getting a roof assessment, you're delirious to how these companies work.
Considering your statement "This is PA people are smarter...", I'd like to counter that argument.

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Stephen Lacey

About: I am a reporter with ClimateProgress.org, a blog published by the Center for American Progress. I am former editor and producer for RenewableEnergyWorld.com, wh... more »