The future of solar financing
This article originally appeared on GigaOM Pro, GigaOM’s premium subscription research service.
Over the past few years it’s become obvious to all involved in selling both residential and commercial rooftop solar systems that customers will balk at the hefty upfront costs of purchasing, installing, and maintaining a solar panel system. Into the fray have stepped companies offering financing solutions, ranging from power purchase agreements at fixed rate electricity prices to 20-year leases.
The question I’ve mulled over in my head has been whether the solar installation game is likely to become vertically integrated with installation and financing under one roof. SolarCity has gone this route, handling both financing and installation, and its success will be tightly linked to its cost of capital. Effectively, how cheap can it get money in order to help its customers finance their systems?
In a previous column examining First Solar’s small re-entry into manufacturing panels…
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