Banking institution Citigroup has opened up a $200 million debt facility with clean energy provider Kilowatt Financial that will enable the company to expand its solar lending program to more U.S. customers keen on installing rooftop PV.
Kilowatt Financial offers a zero-money-down loan of up to 20 years to U.S. homeowners who want to install a rooftop solar PV system, and the funds will be used to expand this program further across the country.
Citigroup and Minneapolis-based Kilowatt Financial will securitize the loans with the aim of generating additional capital for future solar projects. Although further details of the debt warehouse facility were not forthcoming, Kilowatt Financial did receive $100 million from Citigroup in 2014 for consumer energy-efficiency projects.
Citigroups Marshal Salant, the companys head of alternative energy finance, said of the deal: "We are proud to continue our support for Kilowatt Financial on its mission to help consumers run their homes with low-cost renewable energy."
Kilowatts solar financing program is available to homeowners all over the U.S., offering low interest rates to accompany the non-existent upfront costs. "These industry-leading solar loans help homeowners make the switch to solar and achieve a significantly greater return on their investment in renewable energy relative to the financial products historically available to them," said Kilowatt Financial CEO Matt Melius.
"We appreciate Citis ongoing commitment to helping us make investments in solar energy a reality for more of the consumers and communities that we both serve."
For Citigroup, the investment is part of a wider $100 billion clean energy and environmental goal over the coming decade. The bank announced earlier this year its intention to release funds via loans and investments that will help facilitate the fight against climate change.