Google to Invest in Home Solar Systems (GOOG)

Google Inc. (NASDAQ: GOOG), the Mountain View, California-based search engine giant, today said that it will fund the construction of home solar systems. The company, which had made investments in renewable energy projects in the past, said that it will provide $75 million to build 3,000 residential solar electricity systems across the U.S.

Google said that will own the panels and will be paid over time by consumers, who purchase the electricity produced by the panels. The company is developing a fund with Clean Power Finance, a San Francisco-based company. Local solar installers will be able to tap the funds to provide financing plans to prospective buyers.

Under the plan, homeowners will be able to install a $30,000 solar electricity system on their house for very little or no money up front. Customers will be required to pay a monthly fee, which will be the same or less than what they currently pay to their local utility for power.

Google said that it will earn attractive return on its latest renewable energy investment in two ways. The company will receive a monthly fee from homeowners. Also, as owner of the systems, the company will benefit from federal and state renewable energy subsidies. The solar electricity systems will not carry the company’s brand.

Although solar power has become cheaper, the up-front costs are quite high, with a typical home electricity system costing $25,000 to $30,000. Even with the help of federal and state subsidies, homeowners have to shell out a considerable amount of money to install these systems.

Few solar financing plans are available to consumers at the moment. However, these are only offered by large solar companies. But with the Google fund, small and local installers will now be able to offer financing plans and this should boost demand for home systems.

Rick Needham, Director of Green Business Operations at Google, said that cash sales of solar panels have been good, but once you add financing, sales can go through the roof.

Google shares are higher in trading today. At last check, the stock was up 2.65% to $545.99.

Post Written By: Ed Liston Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.