SunRun Inc., a company that leases solar-power systems to homeowners, said Tuesday it is expanding into Colorado.
San Franciso-based SunRun, founded in 2007, says it is the first company to offer Colorado homeowners a solar-power lease, which it said helps them avoid the initial cost of installing solar panels as well as maintaining and repairing them.
The company already serves residents in California, Arizona and Massachusetts.
“With SunRun, homeowners pay as little as $1,000 for a one-time system installation fee, and then pay a low, monthly bill to have solar energy at home,” the company said in a statement.
“SunRun provides complete monitoring, repairs, insurance, and a performance guarantee for all its customers, making it a simple option for homeowners who don’t want to think about solar equipment or pay a high upfront cost to switch the source of their electricity.”
Even with all available tax incentives a typical solar-power system supplying all power to a home can cost a homeowner $17,500.
The company will operate here under a new Colorado law, Senate Bill 51, that allows solar companies such as SunRun to own solar panels on someone else’s property.
In a statement, Gov. Bill Ritter said he was “pleased to welcome SunRun to Colorado. … “With great support from the Legislature, we’ve passed some of the most forward-thinking legislation in the country to help us attract companies like SunRun to Colorado. And not only are we creating sustainable jobs, we are lowering energy costs, increasing energy security and leading America toward a new energy future.”
Ritter touted the solar-lease concept in his State of the State address in January.
SunRun said it will work in partnership with local companies Namaste Solar, REC Solar and Real Goods Solar to install the solar panels.
SunRun secured $105 million in financing from U.S. Bank in November, and said the commitment will allow it to fund 2,500 new systems worth $100 million.
Then, in July, it raised $18 million in a round of venture funding, with Accel Partners leading the round.
Both SunRun and its chief rival in the solar-lease business — Foster City, Calif.-based SolarCity Corp. — normally rely on outside tax equity investors to make their models work. And given the recession and credit crisis, the market of willing tax equity investors has dwindled to a handful, which in the past has led to waiting lists for customers who want to lease solar panels.
Edward Fenster and Lynn Jurich started SunRun together as classmates in Stanford University’s graduate business school. They are CEO and president, respectively.
