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SolarCity raises $345 million to fund new projects

SolarCity raises $345 million to fund new projects
U.S. Sen. Michael Bennet ( D-Colo.), center, helps as SolarCity employees install a solar panel on a home in south Denver in 2010. (Ed Andrieski / Associated Press)

SolarCity Corp. has raised $345 million from four partners to fund new solar projects, the company said Monday.

The financing, which came in June and July, will cover the capital cost of new equipment and installations.

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The San Mateo rooftop solar firm said its capital markets team has raised more than $1.5 billion in project financing this year.

But SolarCity's business model has struggled as solar installations have become cheaper, making it difficult to make money.

Last month, electric car company Tesla Motors Inc. offered to buy SolarCity for $2.8 billion.

If approved, the deal would unite two companies driven and funded by entrepreneur Elon Musk — Musk is Tesla's chief executive and is chairman of SolarCity. SolarCity is run by Lyndon Rive, Musk's cousin.

For more business news, follow me @smasunaga

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