Wells Fargo (WFC) will provide financing for $100 million worth of commercial solar projects built and maintained by SunPower (SPWRA).
SunPower is entering into power purchasing agreements where it sells electricity to customers at rates competitive with retail prices (around $0.12-.15/kwh). It pays Wells Fargo leasing fees for the solar projects.
FBR Capital says it thinks this is an incremental step forward and any revenue gained will have below average margins for SunPower. It thinks that this will only cover 20-25 MW out of 130 MW in total this year. FBR says the affect on EPS will be negligible.
SunPower has to do this deal, though, because it’s a rough environment for solar companies looking to finance projects.
Wells Fargo gets a 30% tax credit, or an equivilent grant from the Treasury, Greentech Media reports.
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