Solar City Gives Homeowners Low Cost Solar Panel Financing

Innovative Approach Sharply Reduces Upfront Costs

Foster City, Calif., April 2, 2008 - For homeowners looking to put solar panels on their homes, the process could now be much more affordable, regardless of whether Congress extends tax credits for them. SolarCity, which provides solar energy systems,is offering a new financing program backed by Morgan Stanley that could change the way residential solar is purchased. SolarLease, the first residential financing program to be provided directly by an installer, offers homeowners an affordable way to go solar without significant upfront costs.

SolarCity will continue to own the solar panels, and with it the rights to commercial tax credits, as well as to Renewable Energy Credits and newly emerging Carbon Credits. That allows SolarCity to apply the savings to customer financing. Financing solar energy systems therefore becomes significantly more affordable, as monthly payments for most customers are less than their previous utility charges. In addition, the upfront payment is significantly less: a four-bedroom homeowner can install a solar system for an initial payment of about $2,000 where previously the same system would require a $25,000 cash investment. SolarLease also includes installation, performance guarantees and lifetime support all from one vendor.

"We've wanted to go solar for quite a long time," said Don Crevy, an early leasing customer. "With SolarLease we can immediately get all the advantages of solar energy ... without blowing our budget."

In California, less than one percent of California homeowners have installed solar electric systems. The SolarLease program has the scale to support thousands of residential solar installations and will rapidly accelerate the number of installations completed in the last 20 years.

"Customers have called for alternatives to solar purchasing, and our innovations in financing will allow them to get the benefits of renewable energy quickly, easily and affordably," said David Arfin, Vice President of Customer Financing at SolarCity.

"By eliminating the significant upfront capital requirement, solar power is now a truly affordable energy option," said Lyndon Rive, the company's Founder and Chief Executive Officer. "We believe this will spark a great wave of solar adoption. Dollar for dollar, if you had the option of using clean solar power or dirty coal power, which would you choose?" he said.

Financing will be done through a banking partnership with Morgan Stanley. "We are excited about this joint venture opportunity and to help make solar energy an economically viable alternative to the residential consumer. This transaction will allow the consumer to source environmentally friendly power without having to make a large capital investment," said Aaron Lubowitz, Managing Director at Morgan Stanley.