SolarCity Corp., the U.S. rooftop-solar power provider that’s risen fivefold since its initial public offering in December, expects to boost annual installed capacity almost 90 percent next year.
SolarCity plans to deploy 475 megawatts to 525 megawatts of photovoltaic projects in 2014, up from an estimated 278 megawatts this year, the San Mateo, California-based company said today in a statement. The stock rose 23 percent to $47.18 at the close in New York, the biggest gain since May 17.
Demand is surging for residential solar projects financed by SolarCity and peers including Sunrun Inc. and Sungevity Inc., which install rooftop projects at little to no upfront cost to customers. In California, the top solar market, 68 percent of new residential projects were installed through these arrangements in the second quarter, up from 48 percent two years earlier, according to the Solar Energy Industries Association.
SolarCity installed 78 megawatts in the third quarter, and now has 72,506 power contracts that will provide about $1.74 billion in revenue over their lifetimes. The company owns the rooftop projects and customers sign long-term agreements to buy the electricity. It’s targeting 1 million customers, or 6,000 megawatts installed, within five years.