Google To Finance Home Solar Systems
Solar power is the conversion of sunlight into electricity. A significant problem with solar power is installation cost. Google, the Internet search and technology leader announced a new $75 million investment to create an initial fund with Clean Power Finance that aims to help many homeowners install solar power systems. The money will pay for about 3,000 solar electric systems. Clean Power Finance uses the fund to offer leases and power purchase agreements that installers then market and sell to homeowners.
Often, Homeowners don’t have the upfront cash and solar installers don’t have the means to offer financing. Google said its plan will allow homeowners to install a $30,000 solar electricity system with little or no money upfront. Instead homeowners would pay a monthly fee which would be about the same that they would pay in their monthly bills to their local utility. Google will own the panels, and will get paid when customers buy the electricity the panels produce.
With this plan, the installers get to grow their business, the homeowners get to convert to a cleaner power source, and Google retains ownership of the solar energy system itself, collecting a monthly fee at a price that’s often less than paying for energy from the grid. The installer takes care of system maintenance and performance.
This is Google’s second investment in residential solar. Google’s first residential solar investment was a $280 million fund to help SolarCity finance solar installations across the US as part of Google’s belief in the benefits of using solar photovoltaic technology rooftop solar panels to generate electricity at homes where it is needed.