SAN FRANCISCO -- Sunrun, a San Francisco-based solar financing startup, announced Tuesday it has secured financing for the purchase and installation of more than $630 million home solar projects across the United States.
Sunrun, which is backed by Foundation Capital, Sequoia Capital and others, leases solar panels to homeowners and takes care of any repairs or maintenance, such as replacing a faulty inverter or fixing a panel if it's hit by a baseball. Homeowners pay Sunrun a fixed rate for the electricity the solar panels produce, which is typically less than their previous utility bill over a 20-year contract.
Founded in 2007, the company has tried to position itself as an alternative to local utilities and has 35,000 customers nationwide, with California its largest market. It recently expanded its services to Connecticut, giving it an 11-state footprint.
The new financing includes commitments from previous and new investors, including JPM Capital, a subsidiary of JPMorgan Chase & Co.
"Commitments from established investors like J.P. Morgan highlight the strength of Sunrun's business model and the excitement around residential solar," Sunrun co-founder and co-CEO Edward Fenster said in a statement.
Sunrun also announced Wednesday that it has appointed Jason Cavaliere as vice president of project finance; Cavaliere previously worked at Citigroup.
Sunrun has raised $145 million in venture capital and attracted enough financing to support the purchase of more than $2 billion in solar systems.
"To the best of our knowledge, this $630 million - which takes Sunrun's cumulative financings to over $2 billion - is the single largest announcement of its kind," said Raymond James analyst Pavel Molchanov in a research note.
Contact Dana Hull at 408-920-2706. Follow her at Twitter.com/danahull.