SolarCity Corp (NASDAQ:SCTY) hit around 280MW of PV installations in 2013 and has plans to top 500MW in 2014. The company is pushing towards installing as much PV as possible before the U.S. tax equity incentives are reduced in 2017. SolarCity hit its 100,000th customers in March 2014 and the guided residential booking is expected to surpass 100MW in Q1 2014.
SolarCity reiterated that its Lease and Solar Energy Systems Incentives revenue in Q4 of 2013 was $22.4 million, which is up 79% from $12.5 million in Q4 2012. Gross margins were at 48%. Total revenue for the quarter was at $47.3 million.
However, SolarCity reported a loss from operations at $55.3 million compared to $32.3 million in Q4 2012. The total operating expenses increased 78% in Q4 to $65.2 million.
In two years, cuts to tax incentives for solar installations could be an obstacle to further adoption through its lease business model. SolarCity’s first quarter 2014 operating expenses would increase further to as high as $75 million as its expands its sales.