Dive Brief:
- SolarCity has announced the creation of a new fund to finance $750 million of residential rooftop solar installations.
- Google said it will be contributing $300 million to the fund. Investors in the fund could see a return as high as 8%, according to Bloomberg.
- SolarCity CEO Lyndon Rive hopes Google's investment "will lead other corporation to invest in renewable energy," he told Bloomberg in an interview.
Dive Insight:
This is Google's "largest renewable energy investment to date," according to a press release. Google has invested over $1.8 billion so far in clean energy.
The Internet titan's moves are closely watched in the energy space. While Google is unlikely to compete with utilities directly, the company is well-positioned to move into the home — especially after it's $3.2 billion acquisition of smart thermostat maker Nest Labs last year. Unburdened by the utility-customer regulatory compact, companies like Google, Comcast, NRG, Tesla, and SolarCity are often seen as distant but powerful threats to the prized customer relationship.
Boosted by Google's backing, SolarCity's latest fund brings the country's leading residential solar provider closer to winning the battle for long-term customer relationships to sell energy and other services in the home.
