SolarCity Corporation SCTY now intends to extend its MyPower solar loan facility to Maryland for the first time. To go with this, the company will also roll out a power purchase agreement (PPA) option.
SolarCity began its MyPower solar loan offering in eight states comprising Arizona, California, Colorado, Connecticut, Hawaii, Massachusetts, New York and New Jersey. Year to date, the company has been successful in extending this facility to New Mexico and Pennsylvania as well.
Launched in Oct 2014, the MyPower plan is exclusive in the sense that it allows its subscribers to pay off their loans from the energy produced by the system. For instance, customers are required to pay back the loan at 16 cents a kilowatt hour (KWh) for the first year. Then onward users get a $9,000 tax credit and their cost for solar is about 11 to 12 cents a KWh.
The MyPower loan facility and the PPA option combo will make it easier for homeowners to install solar panels on their rooftop at hardly any upfront cost and at the same time allowing them to retain ownership of the system.
While most solar loans are provided through third-party banks, SolarCity has initiated the industry’s first financing term by playing the role of a lender to customers through its subsidiary, SolarCity Finance Company. SolarCity has indeed become a one-stop solution for installing rooftop solar as it provides complete financing, installation, monitoring and repair service from a single source.
Increasing consciousness about greenhouse gas emission has resulted in rising usage of alternate energy for generating power. The U.S. Energy Information Administration projects solar consumption in the U.S. to surge 85.7% to 0.570 quadrillion btu in 2016 from 2013 levels. The expected increase in demand is likely to fuel top-line growth at SolarCity as well as other solar manufacturers like Canadian Solar Inc. CSIQ and First Solar, Inc. FSLR.
SolarCity Corporation currently has a Zacks Rank #3 (Hold). Vivint Solar, Inc. VSLR is a better-ranked stock in the solar industry, carrying a Zacks Rank #2 (Buy).
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