Today SolarCity filed a registration statement with the U.S. Securities and Exchange Commission for the issue of up to $200 million in bonds. This makes SolarCity the first residential solar company to pursue a bond offering.
The company is the largest installer in the U.S. residential sector with a 36% market share in the second quarter of 2014. SolarCity was a pioneer in third-party solar in the United States, and also launched the first securitization of distributed PV assets last November.
SolarCity estimates that it has created funds to finance the installation of roughly $5 billion in renewable energy assets, and it continues to seek ways to deploy additional capital. This gives individuals a way to invest in distributed solar and get a steady return on investment, explains GTM Research Solar Analyst Nicole Litvak.
Litvak also notes that the rates offered by SolarCity compare favorably to other bonds available on the market. U.S. investors will be able to purchase solar bonds for as little as $1,000, with maturities ranging from one to seven years.