Pacific Energy Capital II, LLC, a subsidiary of PG&E Corporation (NYSE:PCG), and SunRun Inc., a provider of home solar financing, announced a $100 million tax equity project financing agreement to fund SunRun’s installation of more than 3,500 new home solar installations across the U.S.
The investment, principally funded by PG&E Corporation shareholders through Pacific Energy Capital, creates the largest residential solar financing vehicle established to date, the companies said. Under the agreement, Pacific Energy Capital will provide financing for the rooftop energy systems and both parties will receive payments from SunRun customers. SunRun will manage the projects.
SunRun offers home solar power without high upfront costs through power purchase agreements (PPAs) and solar leases. Through SunRun’s popular solar plans, homeowners pay as little as $0 upfront to get solar panels installed, followed by a low, monthly payment to have solar energy at home. SunRun provides complete solar maintenance, monitoring, repairs, insurance and money-back performance guarantee for all its customers.
The solar systems funded under the agreement are expected to be installed in 2010 and 2011 in at least five states, including Arizona, California, Colorado, Massachusetts, and New Jersey.
SunRun currently serves more than 4,000 customers in these five states, and is growing 500% year-over-year, the company said. SunRun now partners with 15 solar integrators that collectively provide more than 2,500 solar jobs.
This agreement follows the recent announcement that T.J. Glauthier, the former Deputy Secretary of the Department of Energy, joined SunRun as an Advisor in May. It also follows on the heels of the December 2009 announcement that SunRun had raised another project finance fund with U.S. Bancorp.
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