SolarCity Corp Targets Nevada With First-Of-Its-Kind Solar Service

SolarcityBy BrokenSphere (Own work) [CC BY-SA 3.0 or GFDL], via Wikimedia Commons

SolarCity Corp (NASDAQ:SCTY) has expanded its services in Nevada, and has also begun taking orders. On Thursday, the company said in a statement that it will provide solar energy to customers in Nevada for just $30 per month with design, installation, financing, insurance, monitoring and a performance guarantee included.

SolarCity plans to develop Nevada in strong solar industry

SolarCity is trying to penetrate in regions other than Las Vegas, which is a feasible idea from the company’s point of view. SolarCity Corp (NASDAQ:SCTY) will start taking orders from Nevada homeowners and will also participate in NV Energy’s Solar Generations Program, which is currently expected to reopen in August.

By the end of the October, the solar energy provider will start installing the system and will provide services on a first come, first service basis. Initially, the service of the company will be available in greater Las Vegas, including  North Las Vegas, Spring Valley, Winchester, Paradise, Henderson and Boulder City.

“With its solar resource, Nevada has an opportunity to be a national leader in distributed renewable power generation,” said Lyndon Rive, CEO of SolarCity Corp (NASDAQ:SCTY). He added that the step by the company will create 100 jobs locally, but a sustainable solar energy industry could create thousands of jobs. Rive said that the company looked forward to maintaining a healthy partnership with the state and the industry to create the business and regulatory certainty to ensure a thriving local solar economy.

SolarCity Corp (NASDAQ:SCTY) already employs over 400 people in Nevada and has plans to recruit 400 more by the next year.

Insiders unloading SolarCity

Recently, shares of SolarCity Corp (NASDAQ:SCTY) have been seeing significant insider selling, according to the regulatory filings. Over the last month, four insiders sold the stock while no insider purchased the stock. Two out of four insiders who sold reduced their holdings by over 10%.

CEO Lyndon Rive sold 160,000 shares, and reduced his ownership by 5.6%. Executive Vice President Seth Weissman sold 7,000 shares on April 22, reducing his holdings by 3.2%, while Vice President John Stanton sold 10,000 shares on April 1, reducing his holdings 15.8%. Executive Vice President Linda Keala unloaded around 5000 shares on April 1, and brought down her ownership by 10.9%.

After selling the 160,000 shares, Rive holds 2.7 million shares of SolarCity Corp (NASDAQ:SCTY), while Weissman holds around 159,000 shares in addition to around 56,000 options. Stanton is not left with any shares and owns more than 53,000 options, whereas Keala still holds more than 13,000 shares with 26,000 stock options.

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About the Author

Aman Jain
Aman is MBA (Finance) with an experience on both Marketing and Finance side. He has worked as a Risk Analyst for AIR Worldwide, and is currently leading VeRa FinServ, a Financial Research firm. Favorite pastimes include watching science fiction movies, reviewing tech gadgets, playing PC games and cricket. - Email him at amanjain@valuewalk.com

3 Comments on "SolarCity Corp Targets Nevada With First-Of-Its-Kind Solar Service"

  1. Selling stock is quite normal for all those that have large stock holdings since they have lots of stock to sell, as long as it is reported, as required by law.

    Utility Executives do the same thing but sometimes they do it because they have insider knowledge that ratepayers do not have, like a “settlement” that is not a real settlement, then it could be problematic:

    http://bigstory.ap.org/article/utility-bosses-sell-18m-stock-after-rate-deal

  2. Good post, people need to do the math before making any investment!

    It is also good to point out that both owning and/or leasing are far less than continuing to buy energy from the Utility!

  3. Why are people still considering a solar lease when they can get a $0 down solar loan with tax deductible interest on a much lower priced purchased system while keeping the 30% federal tax credit and Nevada solar rebate?

    1. Add up your lease payments and when compared to an outright purchase you’ll find that you’re easily paying up to 3 times more on a $0 down solar lease versus a purchase.

    2. You’ll pay so much more for a lease than a purchase that’s it’s actually you who will be over-paying for your own maintenance, monitoring and insurance not the leasing company.

    3. You’ll have trouble selling your home because what home buyer in his right mind will want to assume your lease payments on a used, outdated system when they can buy a brand new system with the latest technology and keep the 30% federal tax credit for thousands less.

    4. After making 20 years worth of leasing payments, you won’t even own the system. It will still belong to the leasing company.

    5. Check that quote from the solar leasing company and you’ll find that most of the time they won’t even tell you what brand of equipment they’re installing on your home. I wonder why?

    6. Most if not all $0 down solar leases include an annual payment escalator that will increase your monthly payment by up to 2.9% per year for 20 years.

    7. You’ll be stuck with the same aging solar system without the ability to upgrade for the full 20 year term of the contract. If you bought your system instead, you can sell it at any time and take the proceeds from the sale and upgrade to the latest and greatest equipment. You can’t do that with a lease because it’s not your system to sell.

    8. You’ll have to forfeit the 30% federal tax credit and any applicable cash rebate to the leasing company and you won’t get tax deductible interest on your lease payments. Only a $0 down solar loan or $0 down PACE financing will give you tax deductible interest and let you keep all of your incentives for a much better return on your investment.

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