Google has committed $300 million to the new fund—its largest renewable energy investment to date. The new fund is the largest of its kind ever created for residential solar power, and the second such collaboration between the two companies.
The new fund will cover the up-front cost of solar panel installations for thousands of homeowners in 14 US states and the District of Columbia.
The Google deal is structured as a tax-equity transaction. Renewable energy projects are entitled to various tax benefits, including a credit for 30% of the installed cost of a solar system. However, companies, such as SolarCity, often can’t use the credits and provide them instead to tax-equity investors such as Google.
‘We’re happy to support SolarCity’s mission to help families reduce their carbon footprint and energy costs. It’s good for the environment, good for families and also makes good business sense,’ said Sidd Mundra, Renewable Energy Principal at Google.