Deutsche's Vishal Shah predicts SolarCity's (SCTY +4%) $54.4M sale of solar asset-backed notes could open the door for SunPower (SPWR +4.3%) and others to do similar deals. The latter company has joined the former, which has already received a Baird upgrade in response to the offering, in rallying.
Shah states the 4.8% interest rate carried by SolarCity's notes is below the 6.5% rate he expected, and well below tax equity financing rates (can be as high as 15%). "Bottom line, the Solarcity ABS transaction improves overall sector profitability and sets the stage for a lot stronger growth of the US solar market over the next 12-18 months."
Also: SolarCity is partnering with BMW to offer solar electricity rate discounts to buyers of BMW's i Series hybrid/electric cars within SolarCity's 14-state service area.