SolarCity Corp (NASDAQ:SCTY) has just raised a ton of money. The solar firm announced that it had raised $305 million in a cash equity transaction. The news helped push up SolarCity shares during Tuesday’s trading session by more than five percent. Interestingly enough, the transaction was advised by a hedge fund belonging to liberal billionaire investor George Soros.
SolarCity Corp Raises Crucial $305 Million
The solar panel installer confirmed an equity cash transaction deal on Monday. A Quantum Strategic Partners affiliated private investment fund gave SolarCity a portfolio of residential, industrial and commercial solar projects. The fund was also advised by Soros Fund Management.
According to SolarCity, the deal included an 18-year loan syndicated to five institutional investors. One of them included Bank of America Merrill Lynch.
SolarCity continues to raise large sums of cash. This is the second time this year that SolarCity has done so. SolarCity had been provided with a $227 million investment in May from John Hancock. That transaction also consisted of a portfolio of residential, commercial and industrial solar projects.
Last month, SolarCity noted that it had been having a difficult time in closing new project financing arrangements. The solar firm blamed this on the merger with Tesla Motors Inc (NASDAQ:TSLA).
SolarCity shares are down 1.29 percent to $16.84 near the end of Wednesday’s trading session. The stock has lost 20 percent of its value since Tesla presented the offer in June. Year-to-date, SolarCity shares have tumbled nearly 70 percent.
SolarCity Corp, NV Energy Settle Nevada Dispute
Ostensibly, Nevada will be embracing a grandfathered plan to the solar file.
It is being reported that thousands of Nevada rooftop solar energy customers will be grandfathered into older and more favorable rates for 20 years. This is part of a settlement between SolarCity and Berkshire Hathaway’s NV Energy.
The agreement will protect more than 30,000 customers who had installed or applied to install rooftop solar panels prior to the Nevada government’s new charges and lowered subsidies. In December, the Public Utilities Commission (PUC) approved a new strategy that would see solar homes paid for their energy at lower, wholesale rates rather than higher, retail rates.
Since then, SolarCity has been fighting and lobbying the state to reverse its decision. It went as far as shedding hundreds of jobs and closing down facilities. Elon Musk would later hold a lobbying event for Nevada officials. NV Energy had endorsed the new rates, arguing that non-solar homes were forced to subsidize green energy. However, NV Energy did request the PUC to adopt a grandfather clause.
For now, the settlement is being described as a “victory.”
“This agreement is a victory not only for 32,000 solar customers in Nevada, but also for all Americans who expect these investments to be protected,” said Jon Wellinghoff, SolarCity’s chief policy officer, in a statement.
Other states have been following the same path as Nevada. Others, though, have been embracing solar subsidies.