SolarCity raises $345 million to finance new Solar Projects ahead of Tesla merger vote

Today, SolarCity announced the closing of $345 million in tax equity from 4 undisclosed partners in the last two months in order to finance new Solar Projects. The money will be used directly to cover the capital cost of new equipment and installations of solar projects in the US.

The announcement is made as the solar installer is still considering the proposed acquisition offer from Tesla valuing the company at about $2.8 billion. SolarCity says it managed to raise over $1.5 billion to date in 2016. 

Here’s the full press release:

SolarCity Raises $345 Million to Finance New Solar Projects

SAN MATEO, Calif., July 18, 2016 /PRNewswire/ — SolarCity Corp. (SCTY), America’s no. 1 solar power provider, raised $345 million in tax equity from four separate partners in June and July to finance new solar projects. The financing facilities cover the capital cost of new equipment and installations, and make it possible for customers to pay less for solar power than they pay for utility power.

In addition to the $345 million in new funds, SolarCity also expanded its existing debt aggregation facility to $760 million, an increase of $110 million. SolarCity added two new lenders to the facility, which accounted for $70 million of the $110 million upsize. SolarCity also expanded its solar renewable energy credit (SREC) financing facility to accept five years of hedged SRECs, significantly lowering its cost of financing for SRECs and drawing more capital from the facility.

SolarCity’s capital markets team has raised more than $1.5 billion in project financing to date in 2016. The company has now created funds and facilities to finance projects with more than 30 different banks and corporate partners.  Investment in rooftop and other small-scale solar is expected to attract $3.4 trillion over the next 25 years, according to Bloomberg New Energy Finance’s New Energy Outlook 2016 report.