SolarCity announced a new $200 million non-recourse financing facility with Credit Suisse to finance the purchase of solar energy systems through SolarCity’s new MyPower loan program. SolarCity’s customers pay for MyPower similar to the way they pay for a solar power purchase agreement (PPA)—based on the energy the system produces from the sun—but they retain ownership of the solar panels.
“MyPower is America’s most affordable solar loan, with a lower cost than PPAs in many locations,” said Brad Buss, SolarCity’s chief financial officer. “The new facility is the first of its kind, and offers the lowest interest rate of any solar financing facility we’ve seen. We expect it to be the first of a large array of financing we create this year to support MyPower’s growth.” More than 8,000 customers have already signed up MyPower since its introduction in October, 2014.
Credit Suisse acts as sole structuring agent and administrative agent and U.S. Bank serves as the Trustee for the financing facility. After the MyPower systems financed by the Credit Suisse facility are fully deployed, SolarCity expects to refinance the facility in the securitization market.