California, United States [RenewableEnergyWorld.com] Pacific Venture Capital LLC, a subsidiary of PG&E Corporation and SolarCity Corp. this week announced that they have reached a US $60 million tax equity financing deal for solar installations for U.S. homes and businesses. The investment, funded by PG&E Corporation shareholders, is expected to allow SolarCity to install more than 1,000 solar systems for U.S. homeowners and businesses via the company’s SolarLease and Power Purchase Agreement financing options.
The solar systems funded under the agreement are expected to be installed in 2010, predominantly in California, with some in Arizona and Colorado. SolarCity already has more than 1,700 solar customers in Pacific Gas and Electric Company’s service area and more than 5,000 solar customers overall.
Under the agreement, in return for providing the upfront investment needed for the new systems, Pacific Venture Capital will receive lease revenues from SolarCity customers, along with the benefits of federal investment tax credits and local rebates for the solar energy projects.
The transaction represents the first such tax equity financing investment by a utility holding company and the first such collaboration between a utility holding company and a solar power provider.
“SolarCity strongly believes solar companies and traditional energy industry players must work together if solar power is to become a mainstream source of electricity in America,” said Lyndon Rive, SolarCity’s CEO. “PG&E has always been a leader in renewable energy adoption. This agreement is yet another example of PG&E leadership in clean power generation that hopefully others can follow.”
To hear more from Rive about SolarCity’s business model and its plans for the future, watch the video below.