By Isabella Kaminski

SunPower and financial services company Citi have set up a new fund worth approximately US$105 million (£65m) for residential solar lease projects.

SunPower will use the fund to extend its SunPower Lease programme to customers in 8 US states, expanding the financing options available to homeowners interested in SunPower solar energy systems.

The SunPower Lease is now available in Arizona, California, Colorado, Hawaii, Massachusetts, New Jersey, New York and Pennsylvania. Citi is contributing $80m to the fund.

According to SunPower, in addition to low monthly payments with zero down, benefits of the programme include a direct-from-manufacturer performance guarantee and an early buy-out option that allows homeowners to capitalise on solar energy home resale values.

Dennis Arriola, SunPower CFO, says: "Citi's global financial leadership combined with SunPower's leading technology and quarter century of experience offer customers an unprecedented level of assurance that is vitally important when a homeowner enters into a 20-year lease agreement.”

Citi is in the middle of a 10 year, $50b initiative to support the commercialisation and growth of alternative energy and clean technology in markets around the world. To date, Citi has spent over $30b as part of this initiative.

Marshal Salant, Head of Citi's Alternative Energy Finance Group, says: "This important initiative builds upon Citi's robust track record in environmental sustainability and affirms our commitment to renewable energy finance by helping our clients provide economically attractive options for homeowners to save money and generate clean energy.”