SolarCity sells $200m in bonds to direct consumers
US solar installer announces sale on Wednesday in a move to target direct consumers
SolarCity, the largest residential solar installer in the U.S.A, announced on Wednesday the sale of US$200 million in bonds through its own online portal, in a move that targets consumers rather than institutional or accredited investors.
The company is aiming to tap in to a new group of investors in order to develop their network and expand the company’s investment opportunities.
The company is offering bonds that will develop in 1, 2, 3 or 7 years with interest rates varying from 2 per cent to 4 per cent.
Assets of the company rely on selling their long-term solar contracts of 15-20 years.
They sell to home and business owners who pay for the electricity generated from rooftop solar panels.
The cost of installation and equipment is financed by funds collected from banks and corporate investors by SolarCity.
The CEO of SolarCity, Lyndon Rive, said: “The goal is to bring similar financing to average Americans. We want to create more wins for people to learn about making money and saving money in solar.”
Common Assets was brought by SolarCity last December with an intention to connect with a modern, innovative online system to match investors with renewable energy project developers.