Skip to comments.SolarCity brings IPO plans to light [Homeland Security, E-bay, Google, Walmart, Armed Forces]
Posted on 10/09/2012 8:14:44 AM PDT by Cincinatus' Wife
Green tech company SolarCity has filed to raise $200 million for an initial public offering.
SolarCity provides clean energy services to homeowners, businesses, schools, nonprofits, and government organizations. The company strives to make the transition to cleaner energy as smooth as possible by providing support from start to finish. It examines its clients energy usage, identifies areas that can be improved, installs new systems, and continuously offers monitoring, customer service, and support.
SolarCity distinguishes itself from other solar companies because it is not a manufacturer. Instead, the business is based on financing and leasing rooftop solar panels.
Our future success depends on our ability to raise capital from third-party fund investors to help finance the deployment of our residential and commercial solar energy systems, SolarCity stated in its IPO filing. In the past, we encountered challenges raising new funds, which caused us to delay deployment of a substantial number of solar energy systems for which we had signed leases or power purchase agreements with customers.
Customers include Stanford University, the U.S. Armed Forces, the Department of Homeland Security, eBay, Intel, and Walmart.
Serial entrepreneur Elon Musk is the chairman of SolarCity (as well as Tesla Motors - [and SpaceX]), which his [cousins] Lyndon and Peter Rive founded in 2006. Musk owns around 30 percent of the company.
In addition to Musk, SolarCity has received investment from Draper Fisher Jurveston, Mayfield Fund, DBL Investors, Shea Ventures and others over the course of its funding history. In total, the SolarCity has raised a total of $455 million in venture capital.
Last year, Google also committed $280 million to finance solar installations in residential homes.
It is a tough climate out there for publicly traded solar companies. The Bloomberg Global Large Solar Index (BISOLAR) of 17 companies declined 36 percent in 2012 as a global oversupply pushed down prices for panels 28 percent. However, since SolarCity does not manufacture or sell panels, this could work in its favor.
Goldman Sachs Group Inc. (GS), Credit Suisse Group AG and Bank of America Corp. are leading the offering. Read the press release.
*********LEASING********** THE "GREEN" THAT KEEPS GIVING.
April 15, 2012 (National Legal and Policy Center) Taxpayers Subsidize Forbes 'Green' Billionaires' Schemes
"........Musk, best known as co-founder of the company that became PayPal, is Chairman of SolarCity and CEO of Tesla. According to the Center for Responsive Politics, SolarCity spent $535,000 in 2009 and 2010 to lobby Congress and the Department of Energy on climate legislation, the Recovery Act, green workforce training and development, and provisions in various legislation relevant to solar development. SolarCity has sought to extend a program, due to expire at the end of 2012, that delivers to manufacturers an upfront cash grant in lieu of a 30 percent Investment Tax Credit (called the Section 1603 grant program). So far, according to DOE reports, SolarCity has received more than $66 million from that program.
The company also won a partial guarantee from DOE of a $344 million loan that will place up to 160,000 rooftop solar installations on military housing across the country..........." Source
It said, however, that reductions in or eliminations of government incentives for solar power could hurt its results and its ability to compete.
In addition, SolarCity said it was notified this month that the Internal Revenue Service is conducting audits of two of its investment funds, including a review of the solar installations that applied for a popular government cash grant program.
"If ... the [IRS] determines that the valuations were incorrect and that our investment funds received U.S. Treasury grants in excess of the amounts to which they were entitled, we could be subject to tax liabilities, including interest and penalties, and we could be required to make indemnity payments to the fund investors," the company said in the SEC filing.....
Other cleantech companies....cancelled IPO plans at the last minute earlier this year...."
So instead of buying this solar power for what it is worth, about 3 cents wholesale because it is off peak and unreliable, we are paying full retail, about 13 cents.
Oh, Elon Musk. They must mean the HUGE uncle obie bundler. As far as “SolarCity”, sounds like a major control program over everything you do with the power you pay for. They provide it, you pay for it, they control how much you are allowed to use. Sounds like a real good idear. NOT! Hate the smart meter on the gas and electric but, too bad for me. I can’t generate enough of my own energy to cover everything.
Sept 18, 2012 - Elon Musk SpaceX Head Obama Bundler?
“......Tesla has even more questionable connections:
Tesla brings political pull, as well. A former Tesla board member, Steve Westly, is an Obama bundler who raised hundreds of thousands of dollars for the president in 2008 and for his 2012 re-election campaign. His Westly Group was also a financial supporter of Tesla Motors until Tesla went public in 2010, and Westly continues to back the company.
Teslas founder and CEO, Elon Musk, is a hearty political contributor who has primarily backed Democrats, including Obama. According to published reports, another Tesla investor is Nick Pritzker, a donor to Obama and a cousin of Penny Pritzker, the national finance chair of Obamas 2008 campaign....”
If Green is Good it should be able to stand on its own.
It depends. In the southwest, peak is noon to 6 PM and these systems are reliable in 330 days of sunshine per year.
On the east coast, not so much.
The customer pays 80% via the lease, the utility 20% is typical. Whether the 20% is worth it from the utility's point of view is questionable. It depends on assumptions regarding electricity inflation and value of money.
At least it is voluntary for the customer.
The impact on all customers because the utility is forced to rebate some cost to some customers is the question.
The Left (through an unregulated EPA) is regulating and punishing oil and gas to raise costs and suppress production.
Green technology is being subsidized to be pushed on us and lower our energy usage, and along with it, our strength as a country.
Obama and his Science and Technology Adviser and Policy Czar, John P. Holdren, are de-developing America.
so not only would you trade one ogre of a utility provider for another, you would be subsidizing it... at least they wouldn’t blow up on ya.. or would they? can a solar panel become overloaded if a massive solar flare huts Earth and would it just fry or could it flame-on?
The southwest is not a bad place for solar, but solar city advertises all over the east coast. Their ads are misleading implying that you gain independence from the grid (then they caveat that the grid is there “when you need it”) Yeah, it’s there “when you need it” to pay too much for your power. One thing I noticed about the states they do business in is they are mostly green leaning so they can persuade the utility regulators to give them a sweet deal for politically correct electrons.
No, he doesn’t need cap and trade, he is simply ripping off all electric rate payers (i.e. you and me).
They rip off the ratepayer. Instead of buying reliable gas or coal fired electric for 3 or 4 cents, you are paying this guy 13 cents (or whatever you retail price is) for his unreliable, off-peak power.
Folks i know who work for Space-X say that he is an arrogant SOB. Maybe that’s why he and uncle obie get along so well.