SolarCity to Fund over $350M Solar Projects with JP Morgan - Analyst Blog
One of the leading solar service providers in the U.S., SolarCity Corp. (SCTY) announced that it has entered into a deal with investment bank JP Morgan Chase (JPM), to finance over $350 million in solar power projects.
This is the second fund created by SolarCity in collaboration with JP Morgan. SolarCity had signed a deal with JP Morgan earlier in 2013 to finance about $170 million solar power projects.
American homeowners stand to gain immensely from this deal. They will be able to install solar panels without any upfront cost and get solar power at lower prices than that of utility power.
In Dec 2014, the company also teamed up with Bank of America Corporation (BAC) to finance about $400 million in solar power projects through 2014 and 2015. The residential solar program followed the commitment that Bank of America previously had with SolarCity to finance over $200 million in commercial solar power projects. SolarCity is thus aggressively involved in encouraging solar installations in the nation.
This California-based company is pursuing multiple growth ventures and marketing ploys to strengthen its presence across the nation. In Nov 2014, SolarCity signed a deal with the giant retailer, Wal-Mart Stores Inc. (WMT) for the installation of new solar projects at Wal-Mart stores across 36 states in a span of four years (read: SolarCity and Wal-Mart Sustainability Story Continues).
SolarCity also rolled out several plans to boost demand for solar energy. Recently, the company unveiled plans to offer loans to homeowners for solar systems under a program called MyPower. MyPower is unique in the sense that the loan is paid off by the energy produced by the system. It basically caters to homeowners who are more interested in owning than leasing. Moreover, it introduced Solar Bonds to act as an additional source of capital for the company.
This Zacks Rank #3 (Hold) company has beaten earnings estimates in three of the last four quarters, delivering an average positive earnings surprise of 10.18%. These commendable ventures and initiatives will likely drive earnings at SolarCity going forward.
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