SolarCity continues streak of aggressively raising capital


It is only Tuesday afternoon, and it has already been a busy week in terms of fundraising for U.S. residential solar installers. On Monday, Sunnova announced that it had raised US$300 million. This was followed today by Vivint Solar reporting that it has closed on $200 million in a term facility with two tranches.

But perhaps the busiest of all has been Solar City. On Monday the company initiated the sale of $105 million in unsecured bonds, most of which will be purchased by SolarCity Chair Elon Musk’s space exploration company SpaceX.

These bonds will be in two tranches: a $100 million offering of bonds with a 4.4% annual interest rate which will mature one year from now, and $5 million in 5.25% solar bonds, which will mature in 2021. SpaceX will buy $90 million of the 4.4% bonds.

Today SolarCity also announced a new tax equity fund which will be used to finance $131 million in residential, commercial and military solar projects. This is the company’s second tax equity fund which it has closed in less than one month, following closely on the creation of a $249 million fund, which has the potential to double to $498 million.

SolarCity has not revealed the investor involved in today’s fund, or the investor in the $249/$498 million fund it created a month ago.

CEO Lyndon Rive has said that he plans for SolarCity to be cash-positive by the end of 2016, and the company plans to install 1.25 GW of solar PV over the course of the year.