SolarCity Trades Small, Steady Lease Payments to Get Cash Today
- Raises $227 million from 201-megawatt solar lease portfolio
- Deal intended to increase cash flow for biggest U.S. installer
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Leasing is the driving force behind the fastest-growing U.S. solar industry, but surging installation figures haven’t translated into swelling cash flow at SolarCity Corp.
That’s why the biggest U.S. rooftop solar installer developed a new financing source, a “cash equity” investment that monetizes the revenue stream from a portfolio of solar leases. SolarCity announced the first such deal Tuesday, a $227 million transaction with Manulife Financial Corp.’s John Hancock Financial unit.