Solar installation company SolarCity Corp (NASDAQ:SCTY) has announced that it has struck a deal with Best Buy Co., Inc. (NYSE:BBY) to offer its services for sale in a limited number of the retail chain’s stores. The company will be moving into 60 locations in Arizona, Hawaii, California, Oregon and New York.
SolarCity to educate the public
SolarCity Corp (NASDAQ:SCTY) management said their goal is to not only pitch their installation services directly to consumers, but also conquer some misconceptions about solar power. They said many consumers hold the outdated view that putting in solar panels at their homes is very expensive and also a difficult process. They want to explain to consumers that they can save money on their electric bills starting from the first day the solar panels are installed.
This new partnership between SolarCity Corp (NASDAQ:SCTY) and Best Buy Co., Inc. (NYSE:BBY) is basically an expansion of an experiment the two conducted in September at some stores in New York and California. They also have a similar partnership with The Home Depot, Inc. (NYSE:HD) and have found some success with it so far.
How SolarCity’s contracts work
SolarCity Corp (NASDAQ:SCTY) only charges homeowners for the power their solar panels generate every month. That tends to be far less expensive than the power received from the grid, so on average, homeowners see a 10% to 15% drop in their utility bill each month. The company offers its services through 20-year leases. Customers do not own the solar panels or pay any upfront cost for them or even the installation.
Company representatives will be on site at Best Buy Co., Inc (NYSE:BBY) stores in order to explain how they can install solar panels on a home. They use satellite images to ascertain the best positioning for the panels on the roof.
SolarCity Corp (NASDAQ:SCTY) said a recent survey indicated that 62% of homeowners in the U.S. are interested in solar power, but fewer than half a million homes have solar panels installed. That means there are tens of millions of homeowners interested in having solar panels but who do not yet have them.
SolarCity offers gift cards
To entice consumers to check them out, SolarCity Corp (NASDAQ:SCTY) is offering a $100 gift card to use at Best Buy Co., Inc. (NYSE:BBY) stores for anyone who signs up through the stores before April 22, which is Earth Day.