Feb 19 Honda Motor Co's U.S. division
is partnering with solar power company SolarCity Corp
on a $65 million fund to help its customers and dealerships
finance solar projects.
The companies did not say how much money they each
contributed to the fund, which is expected to finance systems
for between 2,500 and 3,000 residential homes, as well as 10 to
SolarCity, which installs and maintains the panels, has
raised similar funds from banks such as U.S. Bancorp and
from Google Inc, but this is the first such deal with
"This is really the first initiative like this," said Steve
Center, vice president of the environmental business development
office for American Honda Motor Co. "We've got some of the most
sought after customers in the marketplace."
The funds allow homeowners to pay a monthly fee for their
solar panels rather than pay for them all at once. The growth of
such financing in the solar industry has made going solar an
option for households that otherwise could not afford it.
The move is part of Honda's goal to reduce is greenhouse gas
emissions by 50 percent by 2050, executives said on Monday. As
the owners of the panel systems, Honda and SolarCity will also
be able to claim a federal tax credit worth 30 percent of the
value of the system.
"My hope is that this sends a message to other corporations
to follow," SolarCity Chief Executive Lyndon Rive said in an
Honda customers will be able to claim an additional $400
discount beyond what they would receive from SolarCity directly.