SolarCity, the leading US installer of residential solar systems, is to offer green bonds directly to consumers, allowing individuals to benefit from the investment opportunity of renewable energy.
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The California-based company will issue $200 million (£124.9m) in the bonds, offering them for as little as $1000 (£625) each. Maturities will range from one to seven years with interest rates of up to 4%.
The earnings will be paid by income received from monthly payments made by thousands of SolarCity’s customers across the US.
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The company, which is backed by billionaire Tesla Motors founder Elon Musk, say the move presents the first opportunity for retail investors to participate in a public solar bond offering.
“This is the first time you’re seeing investment offered broadly to American investors through a public offering,” Newell told journalists on Tuesday.
“In other cases, companies are allowing investors to invest in a single solar project or perhaps a small group of homes or projects.”
The bonds will represent a portfolio of thousands of solar projects and will be offered through SolarCity’s new direct investment website.
The popularity of green bonds – which are used to finance clean energy or environmental efforts – has soared since their first issue in 2008.
More than $25 billion (£15.6bn) has already been issued in green bonds so far in 2014, according to the Climate Bonds Initiative, with that figure expected to reach $40 billion (£25bn) by the end of the year.
Photo: SolarCity via Twitter