Sungevity, Rabobank Team Up with $75 million Residential Solar Leasing Fund

October 14th, 2011 by Andrew

Pioneering one-stop residential solar systems provider Sungevity and Holland multinational Rabobank have teamed up to establish a residential solar fund that will support over $50 million of new residential solar lease projects around the US, Sungevity announced today.

Sungevity’s business has been growing fast lately: monthly sales have grown 10-fold since January while employee headcount has tripled to around 300. This year, the Oakland-based company entered into a partnership with Lowe’s and began what’s turning out to be a successful expansion on the East Coast.

“This new fund will support Sungevity’s rapid growth and momentum, and address our project finance needs as we enter the next high growth phase for our company,” Mac Irvin, Sungevity’s CFO, stated. “We are pleased to partner with Rabobank, an established leader in financing renewable energy projects, as we invest further in the residential solar space.”

“Rabobank and Sungevity share a commitment to invest in and develop long-term solutions in the renewable energy sector,” added Edward Levin, Rabobank International executive director. “We are very pleased to provide a financing solution that will allow over one thousand homeowners with access to affordable clean energy.”

Sungevity on the Rise

Overall, Sungevity has raised funds to support over $175 million in residential solar projects and has become one of the nations’ fastest growing solar companies with a presence in eight states including Arizona, California, Colorado, Delaware, Massachusetts, Maryland, New Jersey, and New York, according to the company.

Sungevity’s ability to capitalize on the fast-growing popularity of leasing, as opposed to buying, residential solar photovoltaic (PV) power systems, combined with iQuote — an innovative network information system and service that provides firm price quotes for prospective customers around the country within 24 hours of their being received — has helped fuel the company’s rising fortunes.

Qualifying for state net metering programs, federal and state rebates, tax credits and other solar power incentives is typically a painstaking, cumbersome and lengthy endeavor. Another boost for Sungevity’s business is that the company takes all the processes and paperwork that’s associated with this off its customers hands.

The degree to which Sungevity stands behind its iQuote price quotes also distinguishes the company. Not only are they firm and fast, thanks to a nifty GIS-based (Geographic Information System) solar power potential analytical engine, Sungevity will reimburse customers for any shortfall in the solar PV electricity output of the residential solar systems they lease and have installed.

Image Credit: Sungevity

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Tags: affordable solar power, cheap solar power, home solar, rabobank international, residential solar power, retail solar power, solar investment, solar lease, Sungevity

About the Author

Andrew I've been reporting and writing on a wide range of topics at the nexus of economics, technology, ecology/environment and society for some five years now. Whether in Asia-Pacific, Europe, the Americas, Africa or the Middle East, issues related to these broad topical areas pose tremendous opportunities, as well as challenges, and define the quality of our lives, as well as our relationship to the natural environment.

Anonymous

Sungevity is a privately held company. Home owners will save a few pennies on their electric bills, while venture capitalists and banks will reap the lion’s share of the profits.
- Anonymous
  
  Well, individuals will save more than a few pennies. But, otherwise, Yep!.. But if people would rather lose money than put more money down up front, good for the companies making a profit on that while helping us transition to a clean energy economy!
  - Anonymous
    
    Okay, I was being facetious about the pennies, true the savings will be more than a few pennies. Although I don’t believe these leases are the wisest of decisions. One is leasing away their mineral rights so to speak for many years. New technology that promises cheaper solar cells, made with less polluting processes, using less energy to produce are here now, and being brought online. “Liquid Phase Processing, will eliminate the need for the expensive ovens for processing the AR coatings, black silcon will increase effficiency by another 15% or so, and tandem cells will almost double today’s current efficiency rates.
    
    Today you can buy or lease PV’s that will reduce your bill,. In a short time, you will be able to buy PV’s that may eliminate your electric bill entirely, at a reduced cost to todays systems.
    
    Why lease from a company who is essentially getting a loan from a bank, to buy and install your system? Why not just obtain the loan yourself, and keep more of the savings for yourself? Yes there are some valid reasons for leasing, they provide the maintenance, and can obtain loans that some homeowners otherwise could not. Yes it is good to see the conversion to solar moving forward, but let’s call it like it is, Sungevity and banks stand to earn handsome profits, while homeowners realize some meager savings.
    
    My beef is that Sungevity is not a publicly traded company. It continues the distribution process of wealth to those that already have plenty, while offering the homeowner a small savings. People would be better servied to start co-ops, that fund these projects for a whole neighborhood. The energy from the sun falling on one’s property is a valuable resource, one should not be so quick to squander it, for reduced electric bills.
    - Anonymous
      
      All good criticisms. And I agree with you.
      
      The only reasons I support solar leasing is that some people just won’t take the other route (sadly) — i try to always mention they lose out in the long run by not just installing themselves. And, for some people, it may actually be the only legitimate option.
Henrymckay

When will you establish a branch in South Africa