It seems that Google is going to continue down the road of investing in renewable technology. In fact, just recently, the company announced that it is going to put $280 million into a new project that will provide financing funds for SolarCity. For those that do not know, SolarCity is a company that installs, finances and owns rooftop photovoltaic systems.
This new project actually represents Google's largest ever clean energy investment. On top of that, it is also Google's very first investment relating to the distribution of solar energy. Thus, this investment means big things for Google as well.
Google's director of green business operations, Rick Needham, said that this investment is a "quadruple win." This is because it will not only enable more homeowners to lower their own energy bills by making the jump to renewable energy, but it also allows SolarCity to expand its own business. Overall, Google will make a return on this investment upfront since the investment is supported by the Treasury Department's cash grants program.
This program by the United States government is pretty much an alternative to tax credits. The program actually reimburses investors, like Google, up to 30% of a project's expenditures for solar. The program was created back in 2008 after the financial crisis to help keep clean energy investment alive. However, projects must start by the end of 2011 to be eligible.
SolarCity's chief executive officer, Lyndon Rive, said that most solar financing has occurred with traditional banks. Google is now setting a great example for other corporate companies to follow. This should really help the solar energy market in many ways.
