Credit Suisse Group AG is investing $300 million to finance Sunrun Inc. and SolarCity Corp. rooftop solar systems in the U.S.
A $200 million investment for Sunrun will support “thousands of residential solar systems,” the closely held San Francisco-based company said today in a statement. The bank is providing $100 million to SolarCity, matching an earlier investment for commercial and home solar projects, the San Mateo, California-based company said in a separate statement. Terms weren’t disclosed.
Sunrun and SolarCity typically own the systems, which are often installed at no cost to homeowners and businesses that purchase the electricity under long-term contracts. SolarCity installs its own projects while Sunrun works with more than 25 contractors.
The financing arrangement is spurring wider use of rooftop power projects, said Jerry Smith, managing director of the Credit Suisse Strategic Transactions Group.
“The residential solar market is thriving right now, and the model Sunrun created for affordable home solar is driving that success,” Smith said in the statement.
Sunrun has installed systems on more than 24,000 U.S. homes in 10 states and SolarCity has more than 28,000 customers in 14 states. SolarCity’s chairman, Elon Musk, is the chief executive officer of Tesla Motors Inc.