Google (NASDAQ: GOOG) has faith in the solar industry.
And recently the company has proved this by investing $280 million in the San Mateo, California company SolarCity.
SolarCity designs and installs solar systems for residential homes in Arizona, California, Colorado, Washington D.C., Maryland, Massachusetts, New York, New Jersey, Pennsylvania, and Texas.
Homeowners can buy these panels for their homes to run off solar energy.
Or they can lease them.
The leasing option provides a much cheaper option for homeowners who want to get rid of their high energy bill for the greener, cleaner option but can’t actually afford to buy the panels.
By leasing, they pay monthly fees to SolarCity to receive all the benefits of solar panels, while SolarCity still maintains ownership.
An opportunity like this has allowed the solar industry to grow exponentially – one of the major factors stopping people before was the cost.
Google plans to get returns on its investment from the leases paid by homeowners.
This is not the first time Google has shelled out money to invest in renewable resources – the company currently has about $680 million in investments in various cleantech companies, though SolarCity is the first that provides to individual residences.
Google has made a habit of investing in clean technology companies. The idea is to set an example for other companies to do the same and work together to increase the market for renewable energy.
The government also subsidizes companies like this, and those subsidies combined with the investments of companies like Google will not only cut the costs for homeowners but also create new jobs for the market.
And who knows? It might even one day pit renewable energy against fossil fuels.
That would be a pretty clean deal.
That’s all for now,