Company turns to individuals and small groups to fund solar energy endeavorsJanuary 21, 2014
SolarCity looks to tap into new investment resources for the future
SolarCity, a leading solar energy developer in the U.S., is seeking out new investors. The company has made impressive growth over the past few years, breaking new ground in markets around the world and finding success in making solar power more available to a wider range of people and businesses. Now, the company is looking to sell securities directly to individuals and small groups that are interested in the way it delivers solar power and its associated technologies.
Leasing programs are becoming very popular among homeowners
The company has made a name for itself by offering leasing programs to those that are interested in solar energy. These programs offset the upfront costs associated with solar power and rooftop installations, thereby making solar much more attractive to homeowners. This is quite an expensive endeavor, however, and SolarCity must find ways to continue financing this business practice in order to continue operating as intended.
SolarCity aims to make solar power more accessible
One residential solar energy systems costs approximately $25,000, including installation. This high price typically drives many homeowners away from solar power as most companies specializing in solar installations require upfront payments. A leasing program takes away the need for upfront payments, allowing homeowners to pay for their solar installations on a monthly basis. Those that opt to pay off their lease early are also provided with discounts on the overall cost of the installed energy system.
Small investors may be the key to continues success for SolarCity
SolarCity has relied heavily on large investors, such as Google and Bank of America, in order to fund its efforts. The company is now turning to smaller investors as it sees these investors as an untapped resource. SolarCity has announced its acquisition of Common Assets, a financial technology company that will serve as SolarCity’s investment platform. Individuals and small groups may be able to provide SolarCity with the funding it is looking for, but green technology investments in the U.S. have dropped by 8% throughout 2013, according to data recently released by the United Nations.