AltEnToday

CNet reported today that San Francisco-based SunRun has secured a $12 million venture round from Menlo Park venture capital firm Foundation Capital. In terms of energy finance deals, this is a drop in the bucket - but perhaps SunRun’s aspirations of becoming an economical energy provider for potentially millions of customers in California (and beyond) just came a little bit closer to reality.

SunRun is part of a new model for energy economics - paying for the electricity generated and essentially leasing the equipment. Think of it like cable TV - you don’t have to buy the cable box to get cable service. Same model - different application.

The economics definitely make sense - SunRun charges the customer for electricity at a rate that meets their payback needs, as well as their financing objectives. The company can coordinate purchasing and maintenance activities on a much larger scale (and with more favorable terms) than individual homeowners by themselves. And best of all - the up-front cost of the system is cut dramatically - in most cited cases about half to a third of the cost of the system outright. Immediate savings on your energy bill, guaranteed operation, and a company to wrestle with all the complex financial and construction issues.

This sounds like a win to me, and could easily be perceived as a large-scale avenue for solar PV growth, especially as solar achieves grid parity on rising fossil fuel and grid maintenance prices that the large utilities are burdened with.