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Banking on Solar Power: Companies Acquiring Funds for Growth

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Companies acquiring funds for growth in Solar Energy

Recently, JPMorgan Chase & Co. helped a privately held solar installation provider secure funds totaling $630 million. This acquisition of funds is to help Sunrun, the solar installation company in question, to develop a system where homeowners can benefit from the power of solar without actually owning the equipment. The leasing option allows these individuals to save on power needs, while paying less for a lease on the equipment. The business model relies on local installation companies and relieves of the initial costs to the home owner.

Shortly after acquiring these funds, Wells Fargo & Company announced that it would be shelling in an investment of more than $100 million over the next 18 months to the solar energy provider, SunEdison Inc. for the same reasons as above. Wells Fargo has previously financed close to 200 solar projects since 2007 and is showing no signs of flinching from continuation of supporting photovoltaic technologies.

Read more about Advantages of using Solar Energy.

Additional funding to solar projects in other areas of the globe includes the Goldman Sachs Group. After announcing plans to invest nearly half of a billion in Japan Renewable Energy Co over the next five years, the private equity arm of the company plans to invest another $135 million in ReNew Wind Power. Is this a trend that major players are seeing the value of what renewable energy can bring to the market, or do they really have a soft-spot for Mother Earth?

Solar Star Funding, LLC has also joined the ranks of those looking for cash as it puts forward plans to develop the world’s largest solar array. This facility is to crank out 579 megawatts of power in what was previously known as the Antelope Valley Solar Project. The company secured a $1 billion secured note to build the facilities of these Solar Star projects. The construction of the project is to take place in Southern California.

Attractions of Investing in Solar Power

1. Tax Credits – One of the biggest attractions of investing in solar power is the 30% tax break that accompanies any project for renewable energy. This credit is equivalent to 30% of the project’s total cost, which could mean a great deal of money to the average homeowner, should they begin developing their own solar array. Aside from the tax rebate, incentive programs and other proprietary bonuses could follow such an installation.

2. Trustworthy – With the troubles that banks and real estate have had in the past, it leaves some to worry about the impact on society should this “solar bubble” pop as the real estate one did. Who would be left accountable, should the market be unable to sustain another such scam? Although having banks involved further into the development of humanity has many gun-shy about associating themselves with the situation, others are finding the prospects of these projects to be more along the lines of banks making amends for past atrocities. Realistically, they could be simply looking for tax rebates, solar credits and further expansion of business to reinforce their own accounts.

3. Leased Panels – Regardless of a bank’s reasoning to hand over more than half of a billion dollars to a privately held installation company, the ideas surrounding a lease option may have more panels lining roofs than anticipated. As long as the lease amounts are reasonably compared to what a monthly electric bill would be for a household, the prospect of such a business model could be attractive to many. However, these savings would have to be such that would entice a homeowner to allow an electrical makeover to the establishment. On average, the savings is usually around 50% or so.

4. Mass Labor vs. the World – The call for solar power has been gaining strength over the last few years and manufacturing costs have continued to drop. Thanks to China’s involvement in producing solar equipment to resell for lower than others; many companies have been shut down. Although this is bad for those manufacturers that were decimated, it is good for the consumer as these costs incur a lower price tag.

5. Widespread Leasing – Currently, 91% of new solar power installations in Colorado are developed under a leasing arrangement. Within these arrangements, the homeowner pays the third-party installation company for power produced, while the installer receives all of the federal and local tax benefits. The number of installations within Colorado alone has grown considerably since 2011, when the number of new installs contributed to just under 30% overall. This is just one state that has seen a pronounced growth in leasing installations. While each area sees a variation of movement for leasing solar power, the numbers are greater than many anticipated.

Despite how some may feel about using renewable energy, it is a focal point of the majority. Whether these people want to help save the environment or save their money is irrelevant. The fact is that the technology is available and is only continuing to advance beyond our expectations. Although banks may have a different perspective of why the investment of solar energy is sound, these companies help others deliver a product to those who may not have otherwise been able to afford such luxuries.

This post is contributed by Linda Bailey from She is a Texas-based writer who loves to write on the topics of housekeeping, green living, home décor, and more. She welcomes your comments which can be sent to b.lindahousekeeping @




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