The California based energy provider, SolarCity Corp (NASDAQ:SCTY) is up and about offering solar financing facilities in order to generate demand for solar panels. The biggest U.S. supplier for solar power rooftops has launched a program named as MyPower which is a loan program offered in eight states.
The loans will be repaid through power bills of the borrower. CEO, Lyndon Rive stated that loans may be better options for customers compared to leases. The company enjoys fixed assets wholly owned with customers paying monthly payments. This is known as a power purchase agreement (PPA).
The upfront cost of SolarCity Corp.’s (NASDAQ:SCTY) program is relatively low with ownership benefits on the PPA. The energy company aims to finance its program through its SolarCity(NASDAQ:SCTY) Finance Company. The company has also fixed the percentage rate paid annually of 4.5% for the duration of 30 years.
SolarCity (NASDAQ:SCTY) provides its customers a warranty of 30 years with a monitoring package as well as a production guarantee. It is estimated that the company will incur losses in the current year as well as the next due to operations. Investors must make sure prior to investing in the company, when would actual profits from operations start, considering revenues will grow massively but not the bottom line.
Customers pay for the MyPower program the same way a PPA is paid for. It is entirely based on how much energy is generated by the system from the sun’s rays. Rive stated in an interview yesterday that customers will prefer MyPower over PPA once they understand it. He continued to say that the savings are much more than anything PPA could possibly generate.
The company stated that its program is the most affordable in the U.S. as it allows customers the ease of prepayments of either their whole balance or a part of their loan in order to decrease the amount of monthly payments without any extra fees or any penalties. The company ranks as the top service provider for solar energy in the U.S. with more installations of residential solar as we speak.
The company states that its expectations are such that it sees solar power in areas of the U.S. where its adoption was very low previously. A press release stated that SolarCity (NASDAQ:SCTY) is providing solar services directly to customers without any third party linkages like banks or municipalities which makes it easier for the consumer.
It was stated that the company offers the industry’s best program and the shares for SolarCity (NASDAQ:SCTY) went up by about 2% making it to an amount of $55.75 trading this Wednesday. The range for its 52 week is $36.32 to $88.35 with market cap at about $5.2 billion. The estimates for the revenue of the company are at $249.6 million for the current year and $456.67 million for the next. The consensus estimate of Thomson Reuters (NYSE:TRI) however, predicts a loss amounting to $4.12 per share for the current year and $4.74 per share for the next.