First Solar Invests $25 Million in SolarCity; Companies Announce 100 MW Module Supply Agreement

Today, thin-film solar company First Solar and residential solar installer SolarCity made two announcements:

1. The two companies have entered into a five-year agreement in which First Solar will supply 100 MW (megawatts) of its thin film solar modules to SolarCity. First Solar will begin delivering modules to SolarCity in Q1 2009.  This agreement represents First Solar’s initial activity in the U.S. residential market.
2. First Solar will make a $25 million equity investment in SolarCity.  This is part of a $30 million round of financing that will support SolarCity’s continued U.S. expansion.  SolarCity currently serves markets in California, Arizona and Oregon

“The combination of First Solar’s modules with SolarCity’s innovative approach to designing, financing and maintaining complete solar solutions enables homeowners and small business owners to lower their electricity costs while reducing air pollution and the effects of global warming,” said Mike Ahearn, First Solar’s chief executive officer.

“Our relationship with First Solar will enable us to deliver affordable solar power to a wider market of residential and small commercial customers,” said Lyndon Rive, chief executive officer of SolarCity. “We believe that together, SolarCity and First Solar are uniquely capable of making solar power competitive with the cost of electricity generated from fossil fuels across the U.S. – making solar a mainstream source of electricity in the next several years.”

For more information:

• First Solar – Home page
• SolarCity – Home page
• First Solar and SolarCity Announce 100MW Module Supply Agreement to Serve U.S. Residential Segment (October 29, 2008)