Pacific Venture Capital, LLC, a subsidiary of PG&E Corporation (NYSE:PCG) and installation and service firm SolarCity Corp. announced $60 million in tax equity financing 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. SolarCity's financing options allow homeowners and businesses to adopt solar power with no upfront investment.
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.
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.
