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SolarCity Corp.'s deployed systems are now dominated by power purchase agreements rather than lease arrangements, a trend company officials said is likely to lead to greater fluctuations in quarterly revenue.
The San Mateo, Calif.-based distributed solar provider now has more than 500 MW of installed capacity and approximately 83,000 energy contracts, with PPAs accounting for 54% of the installed base, SolarCity CFO Robert Kelly said during an earnings call March 18.
PPAs generate revenue based on the electricity systems produce, company officials noted, while leases essentially provide fixed payments. Though annual revenue is expected to remain "relatively level," the company expects to see more ups and downs from quarter to quarter with a PPA-heavy portfolio....