Recently, Citigroup, Inc. (C) and Credit Suisse Group (CS) entered into a deal with SunPower Corporation (SPWR) to finance its residential solar lease projects worth roughly $325 million. Apart from supplementing the SunPower Lease program, these funds are expected to broaden the funding alternatives available to the homeowners interested in harnessing the highly efficient SunPower solar power systems.
With the announcement of the deal, customers, signing up for this 20-year lease agreement, will benefit from Sunpower’s innovative technology coupled with Citigroup and Credit Suisse’s leadership position in the market. Customers can get Sunpower systems either through the varied loan options available at low-interest rates or directly by paying cash.
The program provides supplementary benefits like zero down payment as well as low monthly payments. Further, it offers a performance guarantee, which is direct from the manufacturer. There is also an option for early buyout that would be beneficial during solar home resale. Presently, SunPower Lease is offered in Arizona, California, Colorado, Hawaii, Massachusetts, New Jersey, New York, Pennsylvania and Vermont.
The recent step in solar energy generation exhibits the strength of the company's 10-year environmental business initiative, which is worth $50 billion. The initiative was taken to mark Citi’s awareness to environment sustainability in order to support the development and promotion of renewable energy as well as clean technology around the world. Till date, $30 million has already been utilized for this.
Through this innovative transaction, Citi is expected to renovate the dynamics of distributed solar generation, produce a significant source of clean energy and generate thousands of jobs across the U.S.
On the other hand, CS was content with helping increased number of U.S. homeowners in gaining advantage of the environment as well as reaping economic benefits of SunPower technology.
Citigroup currently retains a Zacks #3 Rank, which translates into a short-term Hold rating. Moreover, Credit Suisse Group retains a Zacks #5 Rank, which translates into a short-term Strong Sell rating.
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