PG&E Corporation and SolarCity Announce $60 Million in Financing to Install Solar Power for Businesses and Homeowners Agreement with SolarCity Corporation Expected to Fund More than 1,000 Solar Installations for U.S. Homes and Businesses
SAN FRANCISCO and FOSTER CITY, Calif., Jan. 20 /PRNewswire-FirstCall/ -- Pacific Venture Capital, LLC, a subsidiary of PG&E Corporation (NYSE: PCG) and SolarCity Corp., a national leader in solar power system design, financing, installation, monitoring and related services, today 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 and to save money from day one on energy costs.
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.
"This investment represents an opportunity to broaden access to renewable energy, consistent with our focus on advancing clean, low-carbon energy solutions and California's goals to expand rooftop solar," said Rand Rosenberg, PG&E Corporation Senior Vice President, Corporate Strategy and Development. "Equally significant, it enables us to take an initial step toward gaining valuable experience with a technology and a marketplace that may become increasingly important in the future."
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.
"SolarCity strongly believes solar companies and traditional energy industry players must work together if solar power is to become a mainstream source of electricity in America," said Lyndon Rive, SolarCity's CEO. "PG&E has always been a leader in renewable energy adoption. This agreement is yet another example of PG&E leadership in clean power generation that hopefully others can follow."
About PG&E Corporation
PG&E Corporation is an energy-based holding company headquartered in San Francisco. It is the parent company of Pacific Gas and Electric Company, one of the largest combined natural gas and electric utilities in the United States. Pacific Venture Capital, LLC, is a subsidiary of PG&E Corporation that makes capital investments in growing energy companies.
SolarCity—a national leader in solar power system design, financing, installation, monitoring and related services—was founded with the mission to help millions of homeowners and businesses adopt solar power, protect themselves from rising electricity costs and protect their environment from polluting power sources. The company's SolarLease™, PurePower™ and Commercial Power Purchase Agreement (PPA) options can make it possible for homeowners and businesses to switch to clean, solar power and save money from day one on energy costs. SolarCity currently serves more than 500 communities in Arizona, California, Colorado, and Oregon. Additional information about the company is available at www.solarcity.com.
SOURCE PG&E Corporation