Honda Team up with SolarCity to Offer Cheap Solar Power to EV Customers

21st Feb 2013

In an attempt to secure a foothold in the EV market before more companies enter and the competition really heats up, car manufacturers are leaving no stone unturned in the battle to gain market share.

The latest announcement sees Honda team up with the solar energy leader SolarCity to form a $65 million investment fund which will be used to finance an offer that gives eligible Honda customers the opportunity to receive solar power at a cheaper rate than supplied by the grid.

The deal basically works as a power purchase agreement (PPA), and includes a rooftop solar panel, plus installation, maintenance, and insurance. PPAs offer attractive opportunities to customers because there is no upfront cost, instead they just have to sign a contract to buy the electricity produced, often at a lower rate than they would pay for grid-supplied energy, for a set amount of time.

Honda customers who qualify for the deal will be offered two payment options; they can pre-pay for the solar electricity, or pay a monthly rate which will work out lower than their standard utility bill.

Solar power is being considered by a few EV manufacturers as a juicy marketing incentive to attract customers to their cars. Rooftop solar panels help to offset the extra electricity consumption caused by the EV in a sustainable manner.

By. Henry Winter