First Solar & SolarCity Announce Module Supply and Finance Deal

First Solar Inc. and SolarCity Corporation have signed a module supply and investment agreement that could help make solar power a more affordable option for more U.S. homeowners and businesses. The two companies have entered into a five-year agreement that calls for First Solar to supply 100 megawatts (MW) of its thin-film solar modules to SolarCity. The deal marks First Solar’s entrance into the U.S. residential segment.

Pursuant to the agreement, First Solar will begin delivering modules to SolarCity in the first quarter of 2009. First Solar will also make a US $25 million equity investment in SolarCity, part of a US $30 million round of financing that will fund SolarCity’s continued U.S. expansion. SolarCity is a residential solar installer that currently serves California, Arizona, and Oregon with plans to expand into additional states.

“Our relationship with First Solar will enable us to deliver affordable solar power to a wider market of residential and small commercial customers,” said Lyndon Rive, CEO of SolarCity. “We believe that together, SolarCity and First Solar are uniquely capable of making solar power competitive with the cost of electricity generated from fossil fuels across the U.S. -making solar a mainstream source of electricity in the next several years.”

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