First Solar, Inc. (Nasdaq:FSLR) announced that it will enter the U.S. residential solar segment through a supply deal with, and investment in, residential installer SolarCity Corporation.
The two companies have entered into a five-year agreement that calls for First Solar to supply 100 megawatts (MW) of its advanced thin film solar modules to SolarCity. FSLR will begin delivering modules to SolarCity in the first quarter of 2009.
First Solar will also make a $25 million equity investment in SolarCity; part of a $30 million round of financing that will fund SolarCity’s continued U.S. expansion.
SolarCity, one of the nation’s leading residential solar installers, currently serves California, Arizona, and Oregon with plans to expand into additional states. SolarCity says its SolarLease financing option allows homeowners to switch to solar power for less money than they currently pay for electricity from their power company, without the need for a large upfront investment.
"The combination of First Solar’s modules with SolarCity’s innovative approach to designing, financing and maintaining complete solar solutions enables homeowners and small business owners to lower their electricity costs while reducing air pollution and the effects of global warming," said Mike Ahearn, First Solar’s CEO.
"Our relationship with First Solar will enable us to deliver affordable solar power to a wider market of residential and small commercial customers," said Lyndon Rive, CEO of SolarCity. "We believe that together, SolarCity and First Solar are uniquely capable of making solar power competitive with the cost of electricity generated from fossil fuels across the U.S.,-making solar a mainstream source of electricity in the next several years."
About First Solar
First Solar, Inc. manufactures solar modules with an advanced thin film semiconductor technology and provides comprehensive PV solutions that significantly reduce solar electricity costs. By enabling clean, renewable electricity at competitive prices, First Solar provides an economic and environmentally responsible alternative to existing peaking fossil-fuel electric generation. First Solar PV power plants operate with no water, air emissions or waste stream. First Solar set the benchmark for environmentally responsible product life cycle management by introducing the industry’s first comprehensive collection and recycling program for solar modules. From raw material sourcing through end-of-life collection and recycling, First Solar is focused on creating cost-effective renewable energy solutions that protect and enhance the environment. F
About SolarCity
SolarCityis a leader in residential and small commercial solar power system design, financing, installation, monitoring and related services. The company currently serves more than 300 communities in California, Arizona and Oregon. Additional information about the company is available on the Web at www.solarcity.com.
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