Recently,
Citigroup, Inc.
(
C
) and
Credit Suisse Group
(
CS
) entered into a deal with
SunPower Corporation
(
SPWR
) to finance its residential solar lease projects worth roughly
$325 million. Apart from supplementing the SunPower Lease program,
these funds are expected to broaden the funding alternatives
available to the homeowners interested in harnessing the highly
efficient SunPower solar power systems.
With the announcement of the deal, customers, signing up for this
20-year lease agreement, will benefit from Sunpower's innovative
technology coupled with Citigroup and Credit Suisse's leadership
position in the market. Customers can get Sunpower systems either
through the varied loan options available at low-interest rates or
directly by paying cash.
The program provides supplementary benefits like zero down payment
as well as low monthly payments. Further, it offers a performance
guarantee, which is direct from the manufacturer. There is also an
option for early buyout that would be beneficial during solar home
resale. Presently, SunPower Lease is offered in Arizona,
California, Colorado, Hawaii, Massachusetts, New Jersey, New York,
Pennsylvania and Vermont.
The recent step in solar energy generation exhibits the strength of
the company's 10-year environmental business initiative, which is
worth $50 billion. The initiative was taken to mark Citi's
awareness to environment sustainability in order to support the
development and promotion of renewable energy as well as clean
technology around the world. Till date, $30 million has already
been utilized for this.
Through this innovative transaction, Citi is expected to renovate
the dynamics of distributed solar generation, produce a significant
source of clean energy and generate thousands of jobs across the
U.S.
On the other hand, CS was content with helping increased number of
U.S. homeowners in gaining advantage of the environment as well as
reaping economic benefits of SunPower technology.
Citigroup currently retains a Zacks #3 Rank, which translates into
a short-term Hold rating. Moreover, Credit Suisse Group retains a
Zacks #5 Rank, which translates into a short-term Strong Sell
rating.
CITIGROUP INC (C): Free Stock Analysis Report
CREDIT SUISSE (CS): Free Stock Analysis Report
SUNPOWER CORP-A (SPWR): Free Stock Analysis
Report
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