Google (News - Alert) has created a $280 million fund to help U.S. homeowners obtain solar rooftop panels at no initial purchase or installation cost. With this latest investment, Google has now put more than $680 million into a wide range of clean energy technologies. This marks Google’s first investment in residential solar.

A typical rooftop solar system costs $25,000 to $30,000—a prohibitive price for many homeowners. Google's $280 million is expected to pay for 10,000 rooftop systems, to be installed over the next 18 months.

Google is working with SolarCity of San Mate, California, to execute the individual projects. While customers will pay no money up front, they must agree to pay a set price for the power produced by the panels. The rate is lower than or roughly the same as the local electricity price. Google will earn a return on its investment by charging SolarCity (News - Alert) interest to use its money, and reaping the benefits of federal and local renewable energy tax credits.

SolarCity— a national leader in solar power design, financing, installation, monitoring, and energy efficiency services—has now created 15 project funds with seven different partners to finance a total of $1.28 billion in solar projects. Earlier this month, SolarCity locked in a $158 million commitment from U.S. Bancorp. Google becomes the company’s seventh major financing partner.

Google’s support of solar infrastructure expands on Google Ventures’ investments in smart grid startups. Their portfolio includes Redwood, California-based Silver Spring Networks and Goletta, California-based Transphorm, as well as San Diego-based e-vehicle manufacturer NextAutoworks. The more homes and businesses are rigged up with solar panels, and able to generate and distribute power back through the grid, the more data such companies will have to process on behalf of utilities.

“Google is setting an example that other leading American companies can follow,” said Solar City CEO Lyndon Rive. “The largest 200 corporations in the U.S. have more than $1 trillion in cash on their balance sheets. Investments in solar energy generate returns for corporate investors, offer cost savings for homeowners, create new, local jobs for jobseekers, and protect the environment from polluting power sources. If more companies follow Google’s lead, we can dramatically reduce our nation’s dependence on polluting power.”

“Google has made a series of investments in renewable energy because they make business sense and help deploy a range of solutions that can help move us toward a clean energy future,” said Rick Needham, Director of Green Business Operations at Google. “Now, through this partnership with SolarCity, we’re excited to be making our first investment in distributed residential solar, making it easier and more affordable for consumers across the country, including our own employees, to use renewable energy at their own homes.”

 “As American consumers better understand the consequences of their energy choices, demand for affordable clean power is increasing,” said Benjamin Cook, Vice President of Project Finance at SolarCity. “This collaboration with Google will enable us to provide solar power to thousands of homeowners at or below the cost they currently pay for electricity.”