Colorado residents can now enjoy cheaper solar power, with the entry of SunRun Inc. in their area.
SunRun is a company that allows homeowners to use solar energy, without having to shoulder heavy start up costs.
It does this by leasing solar power systems to homeowners. People can thus save on the cost of initial installation of the solar panels, as well as on repair and maintenance. To date, the company is already serving residents in Massachusetts, Arizona, and California. As of now, there are no plans of expanding into other states.
Even with all the government subsidies, homeowners typically pay around $17,500 for a solar power system. SunRun clients pay a maximum of $1,000 for the installation of the solar power system, and then they are billed monthly for their solar energy usage. The company is in charge of monitoring, insurance, and repairs of their system. Homeowners don’t have to worry about other expenses.
Colorado’s new Senate Bill 51 allows companies such as SunRun to operate in the state. The law states that solar companies are permitted to own solar panels on the property of another entity. Colorado Governor Bill Ritter states that this law can lead to creating new jobs, lower energy costs, and increase the state’s energy security. Colorado hopes to lead America towards a new future in energy.
SunRun partnered with local Colorado companies, such as Namaste Solar, Real Goods Solar, and REC Solar, to install solar power systems in homes. This is in alignment with the state government’s goal of producing more sustainable jobs. The green industry in the state will be given its much-needed boost from this project.
Sunrun Inc. relies on outside tax equity investors to run their business. Due to the global recession, the market of tax equity investors has decreased in number. Thus, customers have had to wait for a solar power system to be leased from the company. They hope to raise enough money to accommodate those on the waiting list.
For their Colorado venture, SunRun has secured $105 million from U.S. Bank. That’s enough fund for 2,500 new solar power systems. The company also managed to raise $18 million, in a round of venture funding, with Accel Partners leading the pack. Companies such as SunRun (and its rival, SolarCity Corp), are needed to make solar power systems affordable for those who don’t have enough money for them. This will make sustainable energy available for the masses. Hopefully, more companies will venture into this business as well.
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