Google Joins Forces with SunPower to Fund Solar Homes

Today, Google and SunPower announced a partnership in the form of a $250 million fund designated for financing solar leases, in which homeowners pay for solar electricity rather than for the solar panels that are put on their rooftops. Google announced it would contribute roughly $100 million, while SunPower is on the hook for the remaining $150 million.

The deal is a boost for SunPower's residential leasing program, which it launched in 2011, and has seen some nice growth through its network of dealers that market those leases and installation services, though this business line has yet to significantly contribute to SunPower's revenues. Roughly 20,000 customers across the country have signed on with SunPower for home leases, which can run up to 20 years.

Google is hardly new to the solar power/housing markets. Google has set up other funds in the past of at least $355 million for residential leases through companies like SolarCity and Clean Power Finance.

Google is highly public in its support for renewable and sustainable energy projects. Google has inked deals in the form of wind power projects in the U.S. as well as abroad. Yesterday, Google had announced that it had signed a contract with MidAmerican Energy to buy up to 407 megawatts of wind energy in Iowa.

There has been considerable activity in the residential solar market, having outpaced the commercial and utility segments in 2013, and is starting to attract more conventional electric power companies that produce power with fossil fuels such as coal and natural gas. Amongst these companies are Edison International and NextEra, and some of them are not just taking stakes in companies that sell solar services to customers. Some of these companies are actually buying solar companies so as to enter the market themselves.

Due to increased competition and activity in the residential market as well, there have been a series of acquisitions made by solar companies, such as SolarCity and Real Goods Solar, to improve their sales and marketing, as well as to increase market share and speed up installation speeds. However, analysts suspect that the industry growth is ready to hit a wall in the near future.