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Wells Fargo Now Financing Solar Installations

Welcome to the world of bank-financed solar installations! There’s a new deal called “sale leaseback,” in which SunPower makes the contracts with consumers, Wells Fargo funds the installations and SunPower of San Jose, CA sells the electricity to the consumer. The process essentially leases roofing space with a secure bank behind SunPower. The advantage for the consumer is the lack of large upfront capital outlay, and the advantage for the others is the business in slow economic times. The $100 million in funds was allocated by Wells Fargo in June, but the first funded project will be located at the University of California, Merced, in California’s Central Valley.

The system to be installed at UC Merced will provide two-thirds of all power needed on a typical summer afternoon. The panels will be set up on sun tracking devices to optimize their solar harvest and installed sometime in 2010. UC Merced is located on Highway 99 between Fresno and Sacramento. It is always good to catch the interest of those in college, as they could be the next solar engineers. And no amount of reading trumps being able to run your hand over an installation.

In an article not so long ago, it was noted that banks weren’t willing to touch solar because they had higher-yield investment areas to put their money. It was also said during this past year that even Wal-Mart and Macy’s were unable to obtain funding to put panels on their store roofs. It was considered that unsound of an investment. It’s good to see that the third largest bank in Sacramento (by deposits) has grown less tepid toward home solar power. Wells Fargo bought Charlotte-based Wachovia Corp. last year on Dec. 31, adding $1.3 trillion in assets to its portfolio. Perhaps that’s the bravado.

Having banks on board the solar revolution will undoubtedly ease the transition to a solar world. Bank loans may also stimulate the economy by providing funds for installations that most of us simply can’t afford out-of-pocket and most solar installers aren’t able to finance in-house. Of course, if the job market doesn’t match those loans, no one will be able to pay them back. So, until these investments make some money for Wells Fargo, they may remain one of a select few banks willing to delve into the still relatively new solar installation market.

Source: BizJournals.com

Photo Credit: Millennial Living

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