The Next Energy Innovators

Like many eco-conscious homeowners, Darin Budwig and his wife had long wanted to put solar panels on their roof in suburban Glendale, Calif. What stopped them was the high price. "I wanted to do the right thing for the environment," says Budwig, a registered nurse, "but I really had to ask whether it was worth taking on $30,000 in debt."

Enter SolarCity. After the Budwigs put $1,000 down, the three-year-old startup installed panels on their modest ranch home that meet almost all the family's electricity needs. SolarCity also took care of the many complexities that make going solar such a hassle. The company designed and purchased the system and lined up building permits, financing, and government tax breaks. In return, the Budwigs agreed to lease the system for 15 years at $73 a month—$95 a month less than they pay, on average, for conventional power. They expect to recoup their $1,000 investment in less than a year. Since 2006, SolarCity says, it has struck similar deals with 3,500 homeowners, businesses, and schools in California, Arizona, and Oregon. The goal, says CEO Lyndon Rive, is "to create a multibillion-dollar company in clean power."