Since the company has, on average, been installing about $2 million worth of residential solar a day, the financing will support ongoing projects in the 11 states where the company does business for almost a year, said Sunrun spokesman Andrew Pontti.
“All of this financing will go toward projects, solar system projects,” Pontti said.
He said the company always has funds open and activily seeks financing for its growing business.
Sunrun has seen expansive growth in the last three years and announced last week that it would begin doing business in Connecticut, it’s 11th state.
The company offers third-party-owned, also known as solar lease, systems to homeowners in the states where it operates. The business model allows homeowners to install solar PV panels on their roofs with no upfront cost. The owners then enter into a lease or power purchase agreement to buy the electricity the panels on their roofs generate from Sunrun.
The model has grown in popularity and has emerged as the predominant method for financing home solar installations. Other companies, like Sungevity and SolarCity are using the same financing model, which has led dramatic growth in the solar industry nationally.
“Commitments from established investors like J.P. Morgan highlight the strength of Sunrun’s business model and the excitement around residential solar,” said Sunrun co-Founder and co-CEO Edward Fenster.
Pontti said Fenster highlighted J.P. Morgan Chase’s contribution to this round of financing. While Chase has financed multiple renewable and clean energy projects, including some utility-scale solar investments, it had never before financed residential solar, Pontti said.
“It’s definitely a reinforcement of our business model,” he said.
Sunrun began offering solar as a service in 2007 and has since installed solar on 35,000 residential rooftops, financing more than $2 billion in solar investment nationally, according to a press release from the California-based company.
“We have maintained an uninterrupted source of project finance during this time of explosive growth and the expiration of the federal grant program,” Fenster said in a statement. “Our ability to attract project capital has enabled us to give more Americans access to affordable clean power.”