SolarCity: Master Backup Servicing Agreement
SAN MATEO, Calif., Jan. 10, 2013—SolarCity (Nasdaq: SCTY), a provider of clean, distributed energy, has created a new option for its solar investment funds. The company has completed what it believes to be the industry’s first master backup servicing agreement with an AA- rated financial institution.
“We’re continuing to create enhancements to our investment funds that will attract new investors and expand the sources of capital for the rooftop solar business,” said Lyndon Rive, SolarCity’s CEO. “Our backup servicing is an optional enhancement that further reduces investment risk by placing an AA- rated entity as a backstop to ensure the continued servicing of our solar power systems.”
Developers in a range of mature asset classes such as mortgages, auto financing and student loans often work with large financial institutions to provide investors additional insurance against asset servicing risk in return for a lower cost of capital. Known as “backup servicing”, this enhancement is a common attribute of mature asset classes that SolarCity is now making available to its solar investment funds.
SolarCity pioneered solar leasing, zero-down solar financing and the solar performance guarantee and has perhaps done more than any other company to bring new types of asset investors to solar. The company has worked with 13 different banks, utilities and corporations to create 24 investment funds to finance more than $1.6 billion in solar systems.
SolarCity® (NASDAQ: SCTY) provides clean energy. The company has disrupted the century-old energy industry by providing renewable electricity directly to homeowners, businesses and government organizations for less than they spend on utility bills. SolarCity gives customers control of their energy costs to protect them from rising rates. The company offers solar power, energy efficiency and electric vehicle services, and makes clean energy easy by taking care of everything from design and permitting to monitoring and maintenance. SolarCity currently serves 14 states and signs a new customer every five minutes. Visit the company online at www.solarcity.com and follow the company on Facebook & Twitter.