Sunrun to Buy Up to 100 Megawatts of REC Solar Panels Next Year

Aug 21, 2014 12:27 pm ET

Aug. 21 (Bloomberg) -- Sunrun Inc., a closely held provider of rooftop power systems, agreed to buy as much as 100 megawatts of panels from REC Solar ASA, ensuring its supply amid concerns of a looming shortage.

Sunrun agreed to purchase from 50 megawatts to 100 megawatts of REC’s panels next year, the San Francisco-based developer said today in a statement. Terms weren’t disclosed.

Demand for residential solar systems in the U.S. increased 60 percent last year to 792 megawatts, the fastest-growing market, according to the Solar Energy Industries Association. Total installations of solar panels may surge as much as 29 percent worldwide this year to 52 gigawatts, raising the specter of a shortage after a two-year slump slowed investments in new production capacity. The deal with REC means Sunrun will have a guaranteed supply next year.

“Access to high quality, high performing panels is critical,” Paul Winnowski, Sunrun’s chief operating officer, said in the statement.

Sunrun offers solar leases to consumers, who pay little to nothing up front for rooftop power systems and agree to make monthly payments under long-term contracts.