Nasdaq.com: SolarCity Up on Construction of Solar Panel Making
Plant -
Analyst Blog
Published:
Friday, September 26, 2014 - 10:27
Nasdaq.com
SolarCity Corporation ( SCTY ) continues to expand its solar panel manufacturing business. The largest rooftop solar power provider in the U.S. announced that it will construct a new solar panel manufacturing factory in Buffalo, NY. Following the announcement, the share price of the company increased around 4.4% to $63.04 on Sep 24 from the previous day.
The solar panel factory will be established over a one million square foot site at RiverBend in South Buffalo, known as the Buffalo High-Tech Manufacturing Innovation Hub. Previously, a portion of the land was occupied by a steel mill. The factory is expected to commence operations in 2016.
SolarCity will invest a total of $5 billion over the next 10 years to construct and operate the facility, while the state of New York will finance $750 million in the project. The government fund will be utilized for the construction of the factory and the installation of additional infrastructure. The company will pay $1 plus the cost of utilities to lease the site over the next decade. It also has an option to renew the lease.
