Kyocera (News - Alert) Solar, which according to industry estimates, dropped to number 18  in 2011 among photovoltaic (PV) solar cell producers worldwide, from number 10 the year before, is bringing more money to the table, in the hopes that financing will drive business in the U.S. market.  In addition, a partnership between Clean Power Finance and Morgan Stanley will offer solar leases in Arizona and California.

Kyocera and DDL Provide 100% Financing

The U.S. division of Japan’s Kyocera Group, based in Scottsdale, Arizona, announced on May 7 that it is offering up to 100 percent financing on loan and tax lease options for qualified consumers seeking light commercial and mid- to large-scale commercial solar PV installations.  Funding will be provided through a partnership between Kyocera Solar and De Lage Landen Financial Services, Inc. (DLL), headquartered in Eindhoven, Netherlands.

Both financing options available through Kyocera Solar Finance will cover the total project expenditure, including inverters, racking, wiring, installation, and other costs associated with the system installation. This all-inclusive approach creates a streamlined process for customers ready to make the conversion to solar energy for the environmental and economic advantages it provides.

For projects $10,000,000 and lower, the loan option enables the end user to own the system outright, and to retain tax benefits, and any qualifying local subsidies. Still relatively unique as a solar system financing model, a loan is an attractive option for buyers seeking to benefit from long -term ownership of a 30-plus-year energy system while not paying cash for the system up-front.

Starting at $500,000, the tax lease model is a practical structure under which an end user hosts the system, directly benefits from the energy produced, and rents the system from De Lage Landen through the Kyocera Solar Finance Program. De Lage Landen, a provider of leasing, business, and consumer finance solutions worldwide, will work with pre-qualified applicants to determine final terms of their financing arrangements based on the end-user’s credit quality and the need to cash flow lease or loan payments against avoided utility costs and incentive based revenue.

“To carry out our mission and meet consumer demand for photovoltaic (PV) installations, Kyocera formed a partnership with De Lage Landen to offer comprehensive financing solutions,” said Steve Hill, president of Kyocera Solar, Inc. “Our goal is to bring solar energy to the world, and with Kyocera Solar Finance we are able to help more consumers gain energy independence through clean, solar-generated electricity.”

“Kyocera’s quality products and expertise in the marketplace made our partnership an easy decision," said Mark McGovern, general manager of Clean Technology for De Lage Landen. "With a U.S. focused program, we aim to support Kyocera’s objective towards providing flexible and sustainable solutions to their customers.”

MySolar Alliance Offers Leases

In related news, on May 3, San Francisco-based Clean Power Finance, the online marketplace for residential solar financing and leading provider of solar sales software; MS Solar Solutions Corp., a wholly-owned subsidiary of Morgan Stanley; and Main Street Power Company, a North American solar developer and Power Purchase Agreement (PPA) provider announced the creation of MySolar, a residential solar lease facility that will provide funding for up to $300 million in projects. Zions Energy Link, part of Zions Bancorporation (News - Alert), is the first member of a syndicate of debt providers to the MySolar residential solar lease facility.

The MySolar lease initially will be available in Arizona and California. MySolar is the third solar finance facility available to Clean Power Finance’s national network of solar professionals and brings the total amount of project financing under Clean Power Finance management to approximately half a billion dollars.

“The MySolar lease gives Clean Power Finance’s qualified network of solar professionals another affordable option to help homeowners immediately save money on their electricity bills,” said Nat Kreamer, CEO of Clean Power Finance. “We are pleased that our marketplace and asset management and underwriting services make residential solar an attractive investment to major financial institutions.”

“We are excited about the opportunity to be part of this solar investment facility,” said Martin Mobley, vice president, Morgan Stanley. “Clean Power Finance provides outstanding market access, underwriting and asset management services for solar institutional investors.”

This type of financing is the driving force behind residential solar adoption today because nearly one third of U.S. homeowners can save money with solar financed by a lease or PPA structure. Further U.S. residential solar market expansion is a function of financing availability.