With SolarCitys proposed merger with Tesla lurking on the horizon, the U.S. solar company has agreed to set up a new $300 million fund with Credit Suisse. It is the second significant partnership in as many days for SolarCity, after announcing the signing of a letter of intent with Panasonic for the production of solar modules the day before.
The new fund will be used to finance thousands of residential solar arrays across the U.S., with the goal of customers directly saving money on their energy bills once the systems are installed. It is the fourth collaboration of its kind between SolarCity and Credit Suisse.
Just six months ago, in April, the two companies closed a deal for a $150 million financing facility for commercial solar and battery storage. The facility, which was secured with a portfolio of long-term commercial systems and contracts, is to support deployment of commercial solar energy systems, including battery storage, for businesses, schools and government organizations. And it can be added to similar partnerships, such as the $305 million cash equity financing that was closed with Citi just last month.
The news of the partnership comes just a day after SolarCity signed a letter of intent with Panasonic to collaborate on the production of solar modules and cells at SolarCitys Buffalo facility. The agreement appeared to say that Panasonic will provide cells under a long-term purchase agreement for the manufacture of modules at the facility, however, it hinges on the completion of Teslas acquisition of SolarCity, adding yet more importance to the merger.
With the partnership of Panasonic, presuming that the acquisition takes place, and the continued financing from stable partners, SolarCity is continuing to strengthen its network, putting it in a strong position to expand within the U.S. residential and commercial solar market.