Citi, Credit Suisse provide USD 325m in funds for SunPower's lease scheme
Aug 8, 2012 - US firm SunPower Corp (NASDAQ:SPWR) said today it had secured USD 325 million (EUR 262.7m) in financing commitments from Citigroup Inc (NYSE:C) and Credit Suisse (VTX:CSGN) to fund additional residential solar lease projects.
The solar equipment maker will use the amount to extend its SunPower lease offering, which allows US homeowners to go solar without upfront payments. That scheme is currently in offer in Arizona, California, Colorado, Hawaii, Massachusetts, New Jersey, New York, Pennsylvania and Vermont.
The solar lease scheme represents a financing options, through which SunPower installs residential solar systems, which it also owns and operates, while the homeowners purchase the output and pay monthly leases. The combined payments are lower than a household's utility bill. Once the lease is up, customers can renew it, buy the solar system or remove it.