SunRun, a residential solar installer, today said it has received $105 million from an affiliate of U.S. Bancorp (NYSE: USB) to finance the installation of up to 2,000 residential solar power systems.
SunRun operates under the power purchase agreement (PPA) model, through which it owns the solar panels installed at a customers home. The company then sells the power produced by the system to the homeowner at a fixed priced. SunRun Solar Service includes free maintenance and monitoring.
This is the same method that has had significant success in the commercial solar market over the last two years.
"It is deeply satisfying to witness a significant shift in the way homeowners purchase solar electricity using the power purchase agreement model, and this recent funding from a financial stalwart such as U.S. Bancorp confirms our industry’s belief in its longevity and success," said Edward Fenster, CEO of SunRun.
In June 2008, SunRun raised $12 million in a financing round led by Foundation Capital.
"The reason solar is not on more homes is because it’s been expensive and has been a hassle," SunRun President and Chief Operating Officer Nat Kreamer said in an interview. "We’re really well positioned with this announcement to bring solar to a much broader audience."
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