SolarCity Corp (NASDAQ:SCTY) has announced that is is acquiring solar panel manufacturer Silevo for $350 million in stock. SolarCity also revealed and aggressive plan to build out manufacturing capacity over the next few years, starting with a new solar panel plant in Buffalo, New York.
?Our intent is to combine what we believe is fundamentally the best photovoltaic technology with massive economies of scale to achieve a breakthrough in the cost of solar power,? said SolarCity in a blog post. ?We absolutely believe that solar power can and will become the world?s predominant source of energy within our lifetimes, but there are obviously a lot of panels that have to be manufactured and installed in order for that to happen.?
SolarCity will provide common shares worth $200 million at the close of the deal plus an additional $105 million if certain milestones are achieved, according to an SEC filing. SolarCity leases, sells, and installs rooftop solar panels for businesses and homes. SolarCity said that the plant in Buffalo will be one of the biggest in the world. Its targeted capacity within the next two years is one gigawatt, which is the output of a nuclear reactor.
Tesla Motors chairman Elon Musk said that the new plant will be powered substantially using hydroelectric energy generated by Niagara Falls. This will provide lower costs and clean electricity.