Watch Out Solar City? Canadian Solar Launches Financing Program In U.S.
The U.S. residential solar market still looks an attractive revenue stream to China’s solar companies as Canadian Solar (CSIQ :NASDQ) will be offering a residential financing program for potential customers.
Working with Admirals Bank in Boston, Canadian Solar’s residential customers will be able to borrow up to $40,000 for a solar installation, subject to credit approval.
Chinese solar manufacturers trying to a capture a share of the lucrative residential solar market in the U.S. is nothing new. Suntech Power Corporation (STP :NYSE) gave it a run, even building a production plant a few miles from local competitor First Solar’s (FSLR :NASDAQ) headquarters. But that hasn’t worked out well for Suntech as they shut the doors to the Goodyear, Arizona plant earlier this year.
But offering financing isn’t the only key to cracking the U.S. market. Solar City (SCTY :NASDAQ) success can be attributed in part to a strategic marketing program that demystifies the solar investment while making it look attractive to the average homeowner. Until Canadian Solar displays the marketing chops to compete with current competitors while offering competitive prices despite the high tariffs, Solar City investors will probably continue to sleep well at night.
Shares of Canadian Solar were down 2.35 percent today while shares of Solar City were up 2.02 percent.