SolarCity introduces SMB service, plans USD-123m notes sale

SolarCity Corp (NASDAQ:SCTY) on Tuesday launched a new service that will allow small and medium-sized businesses (SMBs) to pay less for power by going solar, and also unveiled a USD-123.5-million (EUR 111.9m) notes offering.

The US rooftop solar installer has partnered with Renew Financial to offer SMBs a funding option that mixes low cost SolarCity structured financing with Property Assessed Clean Energy (PACE). Under a standard commercial solar lease with SolarCity, the SMB will be able to make the solar payment on its property tax bill.

SolarCity estimates, using an analysis of SMBs in California, that many businesses will have the chance to pay 5%-25% less for solar electricity than for utility power with no upfront cost.

Initially, the new service will be offered to owner-occupied business locations in California, with plans to expand it to the east coast and other territories early next year.

As per the private placement, wholly-owned unit SolarCity LMC Series IV LLC plans to offer solar asset-backed notes valued at a total of USD 123.5 million to qualified institutional buyers. Their anticipated repayment date is February 21, 2022.

(USD 1.0 = EUR 0.905)

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