Direct Energy and SolarCity Sign Multimillion Dollar Deal to Provide Solar Electricity to Businesses
Financing Tailored for New and Existing Direct Energy Customers May Make it Possible for Many to Pay Less for Clean Energy Than They Currently Pay for Energy Costs
PITTSBURGH and SAN MATEO, Calif., Sept. 10, 2013 -- Direct Energy and SolarCity(R)
provide solar electricity directly to businesses. The two companies have
created a dedicated investment fund capable of financing up to $124 million
in solar projects for Direct Energy's commercial and industrial (C&I)
customers, which is partially funded with up to $50 million from Direct
Energy. While many retail electricity providers ask customers to pay a price
premium for a "green energy" option, SolarCity can make it possible for many
of Direct Energy's customers to pay less than current rates for clean
power*. Through the arrangement, eligible Direct Energy C&I customers will
be able to utilize solar power with little or no upfront cost, depending on
the customer's choice of plans.
Customers will be given a choice to pre-pay for their solar electricity or
pay a monthly payment, with installation, insurance, repairs and monitoring
Solar energy's use of free, abundant sunlight and rapidly falling technology
and operations costs have made it cost-competitive with power generated from
fossil fuels in a growing number of markets nationwide. SolarCity's
vertically integrated service model, combined with Direct Energy's energy
expertise, North American footprint, customer relationships and financial
stability are attractive to customers in a fragmented solar market.
"Solar is a viable opportunity that positions Direct Energy Business as a
total energy management service provider for commercial and industrial
customers," said Mike Senff, head of U.S. sales, marketing and 360Direct for
Direct Energy Business. "Solar complements Direct Energy Business' other
product offerings while supporting our customers' corporate sustainability
SolarCity is America's No. 1 full-service solar power provider in the U.S.
with more than 68,000 customers across 14 states, including more than 1,000
commercial and government customers. SolarCity has created
28 investment funds to date. Direct Energy Business serves commercial and
industrial customers in 14 states, the District of Columbia and five
Canadian provinces, providing electricity and natural gas supply and energy
management services to more than 180,000 customers. Direct Energy Business
is part of Direct Energy, North America's largest competitive retail energy
supplier, with more than six million customer relationships across the
"This unique relationship demonstrates how traditional energy companies and
renewable energy companies can work together to make clean energy more
accessible and affordable," said Jimmy Chuang, vice president of structured
finance for SolarCity. "Direct Energy is giving business and industrial
customers direct access to cheaper, cleaner energy.
SolarCity gains an important new avenue to provide its groundbreaking
services to businesses at a lower cost."
*Please note, this is not a guarantee for future energy costs.
About Direct Energy
Direct Energy is North America's largest provider of heating & cooling,
plumbing and electrical services and a leading energy and energy-related
services provider with over six million residential and commercial customer
relationships. Direct Energy provides customers with choice and support in
managing their energy costs through a portfolio of innovative products and
services. A subsidiary of Centrica plc (LSE:CNA), one of the world's leading
integrated energy companies, Direct Energy operates in 46 U.S. states plus
the District of Columbia and 10 provinces in Canada. To learn more about
Direct Energy, please visit www.directenergy.com.