SunPower Corp. (NASDAQ: SPWRA, SPWRB) and Citi (NYSE: C) will shell out approximately $105 million in residential solar project for lease.
With the fund, SunPower plans to extend its solar project lease to customers in eight states. The project is expected to expand the financing options available to homeowners who are interested in high-efficiency solar power systems.
SolarCity has also made available its first residential solar project in January this year in Oregon, where homeowners were offered solar installations for as little as $20 per month.
Meanwhile, Citi is contributing $80 million to the fund.
“Citi’s global financial leadership combined with SunPower’s leading technology and quarter century of experience offer customers an unprecedented level of assurance that is vitally important when a homeowner enters into a 20-year lease agreement,” said SunPower CFO Dennis Arriola.
“We are proud to partner with Citi, and applaud its commitment to promoting the use of solar power.”
“SunPower is the leading manufacturer of rooftop solar power systems in the U.S. because our customers know they can rely on high-efficiency SunPower technology to maximize the power generated on their roof — and their monthly savings,” said Jim Pape, president of SunPower’s residential and commercial business group.
“Homeowners have many financing options when they choose a SunPower system, from cash purchase to loans to leases, and SunPower dealers work with customers to ensure they choose the financing option that is right for them. We are very pleased to extend the lease option to more of our U.S. customers.”
SunPower will make the solar project available in Arizona, California, Colorado, Hawaii, Massachusetts, New Jersey, New York and Pennsylvania.
Benefits brought by the solar project include a direct-from-manufacturer performance guarantee and an early buy-out option for homeowners to capitalize on solar home resale values, on top of the low monthly payments with zero down.
SunPower systems are also available to homeowners through cash purchase or SunPower’s loan program, which offers a variety of low-interest loans.
“Citi remains at the forefront of developing financial solutions that support the adoption of renewable energy and enable consumers to maximize energy efficiency. We are pleased to partner with SunPower, an undisputed leader in solar energy,” said Jason Cavaliere, director in the Alternative Energy Finance Group at Citi.
Citi is currently engaging in a 10-year, $50 billion initiative to support the commercialization and growth of alternative energy and clean technology in markets around the world. At present, Citi has directed over $30 billion as part of this initiative.
“This important initiative builds upon Citi’s robust track record in environmental sustainability and affirms our commitment to renewable energy finance by helping our clients provide economically attractive options for homeowners to save money and generate clean energy,” said Marshal Salant, head of Citi’s Alternative Energy Finance Group.