SolarCity

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SolarCity
Public company
Traded as NASDAQSCTY
Founded 2006
Key people
Lyndon Rive, CEO
Peter Rive, CTO
Elon Musk, Chairman[1]
Number of employees
6,312 (2014)
Website www.solarcity.com

SolarCity is an American provider of energy services, headquartered in San Mateo, California. Among its primary services, the company designs, finances and installs solar energy systems, performs energy efficiency audits and retrofits and builds charging stations for electric vehicles. The company had more than 2,500 employees as of December 2012.[2]

SolarCity has grown in recent years to meet the rapidly growing installation of solar photovoltaic systems in the United States. The overall U.S. market has grown from 440 megawatts (MW) of solar panels installed in 2009 to 3,300 MW in 2012, and it was expected to grow to 4,300 MW in 2013.[3][dated info]

SolarCity is one of the founding members of The Alliance for Solar Choice, or TASC, which is a rooftop solar advocacy organization.[4]

History[edit]

Original SolarCity headquarters in Foster City, California
Installation vehicles with the original SolarCity logo
SolarCity vehicle with current SolarCity logo at night

SolarCity was founded in July 2006 by brothers Peter and Lyndon Rive,[5] based on a suggestion for a solar company concept from their cousin, Elon Musk, who is the chairman and helped start the company. SolarCity has been the leading provider of residential solar power in California since 2007, its first full year of operation, according to the database kept by the California Solar Initiative[6] and was the number one residential solar installer in the U.S. in 2013, according to GTM Research.[7] In 2013, Solar Power World magazine listed SolarCity as the No. 2 overall solar installation company in the U.S.[8]

In October 2014, SolarCity announced it would be offering up to $200 million in solar bonds to launch a new online website to buy the debt, the first registered public offering of such bonds in the United States.[9]

Locations[edit]

SolarCity is headquartered in San Mateo, California, but the company uses a distributed service model in which it provides installation from local operations centers. SolarCity has additional locations in:

Business offerings[edit]

Solar leasing[edit]

In 2008, SolarCity introduced a new solar lease option for homeowners that significantly reduces or eliminates the upfront cost of installing solar power.[15] SolarCity's solar lease can allow some homeowners, by adopting solar power, to pay less each month than they previously paid for electricity from the utility company.[16][17]

Commercial solar[edit]

SolarCity began more actively providing solar services to business, government, and non-profit customers in 2010. In May 2008, the company completed what was, at the time, the largest commercial solar installation in San Jose on the North Campus of eBay. That July, SolarCity completed what was then the largest commercial solar installation in San Francisco, for British Motors, consisting of 1,606 solar photovoltaic panels.[18][19] SolarCity introduced new financing options for businesses in 2009[20] and has built multiple solar projects for other large organizations including Walmart,[21][22] Intel,[23] and the U.S. military.[24] On March 21, 2013 SolarCity announced that it would open a new location in Nevada in cooperation with state government.[25]

Electric vehicle chargers[edit]

SolarCity entered the electric car charging business by buying the SolSource Energy business of Clean Fuel Connections, Inc., which was reported to be finalized in 2009[26] and has also announced a partnership with Rabobank to make electric car charging available for free to owners of Tesla Motors' vehicles traveling on U.S. Route 101 in California between San Francisco and Los Angeles. Other cars that can make use of the same charging technology are welcome.[27] In 2011, the company announced it would install electric car chargers that could charge a wide range of EVs in all of its service territories.[28][29]

Energy efficiency evaluations and retrofits[edit]

In 2010, SolarCity acquired Building Solutions, a software-enabled home energy audit firm, and began to offer energy efficiency evaluations and upgrades such as air and duct sealing, efficient heating/cooling and lighting to its list of services.[30] SolarCity worked with Admiral's Bank of Boston in March 2012 to make a new loan available to finance energy efficiency improvements [31] and expanded its energy efficiency services to the east coast.[32]

SolarStrong project[edit]

SolarStrong is SolarCity's five-year plan to build more than $1 billion in solar photovoltaic projects for privatized military housing communities across the United States, announced in late 2011.[33] SolarCity plans to work with the country's leading privatized military housing developers to install, own and operate rooftop solar installations and provide solar electricity at a lower cost than utility power. SolarStrong is ultimately expected to create up to 300 megawatts of solar generation capacity that could provide power to as many as 120,000 military housing units, which would make it the largest residential photovoltaic project in American history if completed. In November 2011, SolarCity and Bank of America Merrill Lynch announced that they have agreed to terms on initial debt financing for SolarStrong.[34]

Energy storage[edit]

Tesla Motors will open a battery factory in Nevada in 2017, and plans to make a battery storage device called Powerwall that stores solar power for use as a battery backup. The device will be sold to companies including SolarCity.[35][36] SolarCity is running a pilot project in 500 California houses, using 10-kilowatt-hour battery packs.[37]

Project financing and the Google Fund[edit]

SolarCity partners with banks, large corporations and the asset-backed[38] market to create project finance funds to finance its lease and PPA (Power Purchase Agreement) options. SolarCity's financing partners have included Bank of America, Merrill Lynch, Citi, Morgan Stanley, National Bank of Arizona and U.S. Bancorp, among others.[39][full citation needed] Among SolarCity's more well-known financing partnerships was a $280 million fund created with Google to finance residential solar installations in June 2011. The Google Fund was the largest fund of its kind in the U.S., and Google's largest investment in clean energy.[40]

Recently, securitization has been proposed and used to accelerate development of solar photovoltaic projects by providing access to capital.[41][42] SolarCity offered the first U.S. asset-backed security in the solar industry in 2013.[43]

Manufacturing[edit]

In June 2014, SolarCity announced plans to build a new manufacturing facility in Buffalo, New York, in coordination with the SUNY Polytechnic Institute after acquiring Silevo, a maker of high-efficiency solar modules. With a planned capacity of one gigawatt of solar panels annually, the new plant would be the largest solar plant in the U.S. and would compete head-to-head with Chinese manufacturers.[44] Groundbreaking for the project occurred in September 2014 with a target completion date of early 2016.[45]

See also[edit]

References[edit]

  1. ^ "Management Team at SolarCity". solarcity.com. Retrieved 2014-03-15. 
  2. ^ "EDGAR Filing Documents for 0001193125-13-129655". sec.gov. Retrieved 19 April 2015. 
  3. ^ Sweet, Cassandra; Tracy, Ryan (2013-05-06). "Solar Installer Sues for U.S. Grant Funds". Wall Street Journal. Retrieved 2013-08-11. 
  4. ^ "The Alliance for Solar Choice - About Us". TASC. Retrieved 2015-03-10. 
  5. ^ Solarcity Time Magazine, April 17, 2008.
  6. ^ Newsmaker: Elon Musk on rockets, sports cars, and solar power, news.cnet.com, Michael Kanellos, February 15, 2008.
  7. ^ Is the SolarCity Model the Only Way to Scale Residential Solar?, greentechmedia.com, Nicole Litvak, March 31, 2014.
  8. ^ "2013 Top 250 Solar Contractors". Solar Power World. Retrieved 19 April 2015. 
  9. ^ SolarCity offers $200 million solar bonds in first public offering. Reuters, 16 October 2014
  10. ^ a b c d e f g h i j k "Contact Solar City - Regional Offices". Solar City. 
  11. ^ "Solar panels in California". SolarCity. Retrieved 2014-06-19. 
  12. ^ SolarCity opens second Colorado location in Parker denverpost.com, Heather Sackett, May 5, 2011.
  13. ^ Segall, Eli (15 May 2013). "Why a solar panel company is moving into a mall and a business group moved out". Vegas Inc. Retrieved 18 December 2013. 
  14. ^ "SolarCity opens New Jersey operations center". 2012-02-23. 
  15. ^ "Solar power for less than your cable bill | Environment Forum". Blogs.reuters.com. 2008-04-24. Retrieved 2011-10-15. 
  16. ^ Earnest, John (2008-09-27). "> News > North County - Leasing a solar-power system". SignOnSanDiego.com. Retrieved 2011-10-15. 
  17. ^ Sistek, Hanna (2008-07-18). "SolarCity provides SF power below grid price | Green Tech - CNET News". News.cnet.com. Retrieved 2011-10-15. 
  18. ^ SolarCity Completes Largest Commercial Solar Installation in San Francisco for British Motors
  19. ^ "Solar Powered Business Leader". San Francisco Department of the Environment. 
  20. ^ "Startpage - 404 - SolarServer". solarserver.com. Retrieved 19 April 2015. 
  21. ^ Francisco, San (2011-09-21). "SolarCity to put solar on 60 more California Wal-Mart stores". 
  22. ^ "SolarCity to install solar panel & battery combo for Walmarts". Gigaom.com. Aug 7, 2012. 
  23. ^ "Intel To Install 6 Acre Solar Installation in CA | Solar Energy". solarenergy.net. Retrieved 2014-03-15. 
  24. ^ "http://www.airforcetimes.com/news/2009/11/airforce_solar_neighborhood_112209w/". airforcetimes.com. Retrieved 2014-03-15. 
  25. ^ "SolarCity Corp : SolarCity to Expand to Nevada | 4-Traders". 4-traders.com. Retrieved 2014-03-15. 
  26. ^ "SolarCity Installs Electric Car Chargers Along Cal Highway : Greentech Media". greentechmedia.com. Retrieved 2014-03-15. 
  27. ^ "SolarCity Installs Electric Car Chargers Along Cal Highway". Greentech Media. 2009-09-22. Retrieved 2011-10-15. 
  28. ^ VentureBeat. "Solar-leasing startup SolarCity sells subsidized electric car chargers."
  29. ^ CNET. "SolarCity to offer solar-powered EV chargers."
  30. ^ "Solar City Adds Energy Efficiency to Solar Finance, Design and Monitoring". Greentech Media. 2010-10-14. Retrieved 2011-10-15. 
  31. ^ "SolarCity Charges Into Home Efficiency With Admirals Bank : Greentech Media". greentechmedia.com. Retrieved 2014-03-15. 
  32. ^ "How SolarCity Makes Energy Efficiency Easy". Time. 2012-03-28. 
  33. ^ Cardwell, Diane (2011-11-30). "SolarCity Wins Financing for Military Housing Plan". The New York Times. 
  34. ^ "SolarCity and Bank of America Merrill Lynch Move Forward With Project SolarStrong, Expected to Build More Than $1 Billion in Solar Projects". Marketwatch. 30 November 2011. 
  35. ^ "Tesla charges into home battery market despite challenges". Associated Press. 1 May 2015. 
  36. ^ "Tesla Energy is Elon Musk's battery system that can power homes, businesses, and the world". The Verge. 1 May 2015. 
  37. ^ "Why Tesla's battery for your home should terrify utilities". The Verge. 13 Feb 2015. 
  38. ^ SolarCity Announces Proposed Securitization Company press release, 4 November 2013
  39. ^ "10_SolarCity | Fast Company | Business + Innovation". fastcompany.com. Retrieved 2014-03-15. 
  40. ^ "Google invests $280 million in SolarCity". CNN. 2011-06-14. 
  41. ^ T. Alafita and J.M. Pearce, "Securitization of residential solar photovoltaic assets: Costs, risks and uncertainty", Energy Policy, 67, pp. 488–498 (2014). DOI: http://dx.doi.org/10.1016/j.enpol.2013.12.045 open access
  42. ^ Lowder, T., & Mendelsohn, M. (2013). The Potential of Securitization in Solar PV Finance.
  43. ^ "Done Deal: The First Securitization Of Rooftop Solar Assets" Forbes - URL: http://www.forbes.com/sites/uciliawang/2013/11/21/done-deal-the-first-securitization-of-rooftop-solar-assets/
  44. ^ Gold, Russel (17 June 2014). "SolarCity Buys Silevo, a Module Maker". Wall Street Journal. Retrieved 2014-06-19. 
  45. ^ "SolarCity investing $5B in Buffalo, creating 3,000 jobs". 23 September 2014. Retrieved 2014-09-24. 

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