SolarCity launched a Fund including an investment from Credit Suisse to finance more than $1 billion in commercial solar projects. According to the company, some of the projects include battery storage systems for businesses, schools and government organizations in the United States.
In a statement, Credit Suisse Managing Director Jerry Smith said, “We’re thrilled to support SolarCity’s mission to bring clean, affordable solar energy to businesses across the United States. The fund will help more businesses, schools, and government organizations save money and help the environment – it’s a win-win scenario. We’re proud to support this progress with our investment.”
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Latest collaboration between SolarCity & Credit Suisse
The SolarCity Fund is considered the largest of its kind. It is expected to finance more than 300 megawatts of new commercial solar projects over the next two years.
SolarCity said the Fund was the latest in a series of collaboration with Credit Suisse. The companies finalized their agreement in February and started funding the first projects in late March.
Credit Suisse previously served as structuring agent and book runner for SolarCity’s first securitization transactions. The bank also acted as structuring agent and administrative agent for the facility to finance the purchase of solar energy systems through the new MyPower loan program of SolarCity.
According to SolarCity, the Fund will finance projects that utilize its new technologies such as the ZS Peak, a mounting system that reduces time to build a project from multiple weeks to just a few days.
The company’s DemandLogic is an intelligent battery storage system that enables the business to cut further energy costs by using stored electricity to reduced peak demand and associated utility demand charges.
SolarCity CFO Brad Bass said, “Continuing technology improvements, cost reductions and strong financing support from partners like Credit Suisse are making solar economically attractive to a growing number of businesses across the U.S.”
According to him, SolarCity already installed more than 1,800 commercial solar projects in 21 states. Brass said the company, “barely scratched the surface of the addressable market.”
In February, SolarCity also created a Fund to finance $750 million in residential solar projects. The company received $300 million from Google—the largest investment of the search engine giant in solar energy to date.