In an era where utmost measures are being taken towards the growth of renewable sector,Goldman sachs has made a big leap.The giant in investment banking and securities has got into an agreement with solar city corp. in a $ 500 million lease financing for than 100 megawatts of solar power.Solar city corp. allows the consumers to get electricity from grid-tied solar roofs for a rate less than what the utility gives through leasing or PPA’s. This deal is the largest single financing agreement for rooftop systems in the U.S.
Key officials stressed the fact that this deal will send a strong message that investment in solar is stable and reliable.Solar city corp is engaging in expanding the customer base,with the help of the this deal the corp. will be able to. extend credit to homeowners with lower credit scores.As far Goldman sachs is concerned this deal would help them reach the Wall Street bank’s goal of financing $40 billion in renewable energy during the next decade.
These kind of deals create a lot a buzz in the market,leading to more investment in the sector and global financing,which helps to raise the expectations of the investors.