SunPower and Google Form $250 Million Solar Leasing Program

Apr 23, 2014 4:35 pm ET

(Updates with closing share price in last paragraph.)

April 23 (Bloomberg) -- SunPower Corp., the second-largest U.S. solar manufacturer, and Google Inc. are creating a $250 million program to finance residential solar systems.

The solar producer is committing $150 million and Google will provide $100 million, San Jose, California-based SunPower said today in a statement. The program will “help make solar accessible to more families,” said Chuck Boynton, the solar company’s chief financial officer.

The program will support solar leases for rooftop systems that use SunPower panels. Leasing, the fastest-growing part of the U.S. solar market, allows homeowners to pay little or nothing up front for systems in exchange for monthly payments.

This is the second clean-power investment in two days for the Mountain View, California-based search-engine company. Google has invested more than $1 billion in renewable energy worldwide, including two prior deals in residential solar, the company said on its website today.

SunPower gained 7.2 percent to $31.48 at the close in New York. First Solar Inc. is the largest U.S. solar manufacturer.