Capital One Bank is partnering with SolarCity (NASDAQ: SCTY) to establish a fund that will finance residential solar power systems. Capital One is contributing $100 million into the fund as its first renewable energy project. Through this fund, SolarCity will offer U.S. homeowners the option to install solar panels for free and pay less for the solar generated electricity than they pay for electricity from their local utility company.
"This investment will help SolarCity pursue their goals and provide affordable sustainable energy to thousands of homeowners as well as advance Capital One's sustainable energy initiative," George Revock, Capital One's managing director, said.
SolarCity has created more than $4 billion in similar funds to increase the number of residential solar power systems within 15 states. The company currently provides one out of every four residential solar power systems in the U.S.
It is also the first company to issue securities to investors backed by their solar assets. SolarCity raised $54.4 million last November and $70.2 million in April through their first two offerings and are currently working on a third.