SolarCity creates new $249 million fund

The extension of the solar Investment Tax Credit (ITC) will continue to benefit residential and commercial solar lease providers, along with PV power plant developers, in the U.S.

On the back of the ITC extension, SolarCity will continue to fund the expansion of its residential solar lease portfolio through tax equity partners, with its latest fund worth $249 million. Once allocated, the fund can be doubled to $498 million.

SolarCity reports that it has raised 50 project funds with 21 finance partners to date.

"Distributed solar’s unique combination of strong returns and societal benefits has attracted a range of corporate and institutional investors and enabled hundreds of thousands of homeowners and businesses to pay less for power generated by solar panels than they pay for power from utilities," said SolarCity’s Radford Small.

SolarCity intentionally put the breaks on its aggressive growth strategy towards the end of 2015. The potential drop down of the ITC was thought to be one of the drivers behind the move, although a desire to stem losses is also a likely motivator.