SunRun, aresidential solar power service firm, just received a tax equitycommitment from U.S. Bancorp (NYSE: USB) to support the purchase of $200 million in residential solar systems. This tax equity commitment,SunRun’s fifth and largest transaction with U.S. Bancorp ($311 billionin assets), is supported by the 1603 Treasury Grant Program.
It’s U.S. Bancorp’s largest renewable energy tax equity fund to date, according to SunRun. SunRun has raised financing for more than $600 million in solar systems from utility PG&E and U.S. Bancorp,as well as $85 million in venture capital from Accel Partners, Foundation Capital, and Sequoia Capital.
SunRun installs over $1 million in residential solar every day –owning, installing, and maintaining the solar panels for the homeowners, who pay a monthly rate for power while locking in an electric rate for20 years.
I spoke with SunRun CEO and co-founder Edward Fenster. "The $200million shows how much scale you’re going to need," said Fenster. Residential solar companies will need to buy $1 billion in systems ayear to achieve minimum scale, according to Fenster, adding, "This isthe year we’ll see a breakout in the residential market."