Pacific Gas and Electric (PG&E) is planning to spend $100 million to help SunRun, a San Francisco solar company, to finance solar panel installations.
SunRun will use the money from PGE to fund more than 3,500 residential solar installations across multiple states. Unlike many solar companies, SunRun pays for solar installations up front and continues to own the system afterward. They sell the electricity produced by the solar system to the property owner.
Customer payments are split between SunRun and PGE. PGE will receive the federal tax credit for the solar installation.
Banks used to provide solar financing, but this has slowed down since the credit crisis of 2008.
This is not the first time PGE has made this sort of agreement. Earlier this year, it agreed to make a $60 million deal with SolarCity.
SunRun plans to install solar systems in California, Arizona, Colorado, Massachusetts, and New Jersey. This will create jobs as the solar systems require installation and maintenance.
