Want to devise an incentive to get a new industry really humming? Try creating a $100 million dollar fund to finance its projects. That’s what PG&E Corporation (NYSE:PCG) and solar financing specialist SunRun Inc. have decided to do.
Working through its non-utility subsidiary, Pacific Energy Capital II, LLC, PG&E announced a $100 million tax equity agreement that will offer financing for more than 3,500 solar roof installations planned by SunRun nationally. The fund represents the largest residential solar financing established to date in the US.
SunRun has more than 4,000 customers in five states including Arizona, California, Colorado, Massachusetts, and New Jersey. Working through power purchase agreements (PPAs) and solar leases, the company has been able to offer home solar power without high upfront costs. Financing arrangements can enable homeowners to pay no money upfront to get solar panels installed, followed by a low, monthly payment. SunRun provides complete solar maintenance, monitoring, repairs, insurance and money-back performance guarantee for all its customers.
SunRun partners with 15 solar integrators nationally that employ more than 2,500 workers. The company says it is growing 500 percent year-over-year. Says company CEO Edward Fenster: “We are very excited to partner with PG&E Corporation on this agreement, which will make solar affordable to more homeowners across the nation.”