) is all set to grasp the largely untapped abundant solar power
resources in one of the sunniest U.S. states - Nevada. SolarCity
- a pioneer in residential solar - is making a big expansion in
Las Vegas, Southern Nevada.
The company announced that it will start offering leasing service
in Southern Nevada, enabling Las Vegas area homeowners to go
solar for as little as $30 per month, way less than what a usual
utility would charge. The company plans to start its coverage in
the most populated city of Las Vegas with services comprising
design, installation, financing, insurance, monitoring as well as
a performance guarantee. SolarCity expects to initiate
installations by end October serving customers on a first-come,
SolarCity - the largest residential solar power provider in the
U.S. - will participate in NV Energy's SolarGenerations program.
This program is expected to reopen in August and the company will
initially serve customers of NV Energy in the greater Las Vegas
area. This includes the cities of Las Vegas, North Las Vegas,
Spring Valley, Winchester, Paradise, Henderson and Boulder City.
Apart from its renewable energy expansion effort, this move into
Nevada will generate more employment. The company is gearing up
to add 400 employees in the next year to its current count of
400, making Nevada its largest office nationally.
SolarCity installed 567 megawatts (MW) of solar systems,
including residential, commercial and others, through the end of
2013. Notably, its residential installations grew 130% year over
year to 70 MW during the final quarter of 2013. SolarCity's
diverse sales strategies have played a pivotal role in the
company's ability to capture this large pie of the residential
With a current cap of $4.87 billion, SolarCity is already
dominant in the robust solar markets of California and Arizona.
The move into neighboring Nevada is encouraging too. The company
however needs to extend its footprint in the other states as
Last year, the U.S. residential solar market grew rapidly and is
expected to outshine the other solar market segments this year.
Since 2000, residential solar installations have grown steadily
each year. Solar installations increased from 494 MW in 2012 to
792 MW in 2013, marking 60% growth in a year. In this market
scenario, we are optimistic about SolarCity and its business
model that allows residential customers to pay back for their
solar installations on a monthly basis over a period of 20 years.
This not only helps customers to evade bulky upfront payments,
but also lends top-line visibility for the company.
San Jose, CA based solar manufacturer
) have recently teamed up to form a $250 million fund to help
homeowners across the U.S. to install solar panels at home. This
pact is essentially aimed at financing residential solar system
installations that SunPower will then lease out to homeowners.
Tesla Motors Inc.
) founder Elon Musk, SolarCity presently carries a Zacks Rank #3
SOLARCITY CORP (SCTY): Free Stock Analysis
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