Solar Panel Company Sunrun Secures $630 Million In Residential Solar Projects
Sunrun is a solar panel company that has secured financing for over $630 million in residential solar projects led by JP Morgan. The company leases solar panels from third party providers. This way people can have solar panels without actually having to buy or install them. Sunrun owns and insures the solar panels along with maintaining the equipment. The reason why this business model works is because the primary reason why residential and business owners hesitate to get solar panels is because of the large cost of purchasing the equipment.
“This is an important announcement for the entire industry and for homeowners looking for an affordable way to make the switch to solar,” stated a Sunrun spokesperson. “The investment by J.P. Morgan is its first in the residential solar space, a significant landmark and a major capital increase in our industry. It provides stability for the entire industry, reinforcing our third-party-owned solar business model and the excitement from investors. This financing also provides a level of confidence for our partners to build systems quickly satisfying consumer demand for clean solar power.”
Sunrun partners with local installers and works with experts in markets to make sure that solar panels are installed properly. Sunrun has partnership and financing agreements with U.S. Bancorp and PG&E. Sunrun currently has 35,000 customers in 11 states. The financing will be used for supporting their national roll out. The financing will include commitments from JPM Capital Corporation (JPMorgan Chase subsidiary).
The company now has enough capital to buy over $2 billion in home solar systems across the nation. Sunrun’s primary competitor is SolarCity. Sunrun has raised a total of $145 million in funding from Foundation Capital, Sequoia Capital, Accel Partners, and Madrone Capital Partners.