Google, a company that continues to invest in and push for clean energy technology, has recently announced its newest, and potentially biggest, capital venture: funding a no-cost installation solar panel program for homeowners.  While already investing in other mammoth clean energy projects across the US, such as a $100 million investment in the world’s biggest wind farm, the company is now creating a $280 million fund to finance SolarCity‘s residential solar projects. Google essentially aims to erase any initial economic burden thereby moving more rapidly towards installation.  Given many homeowners today struggle with the up-front costs of putting up solar panels on their roofs, even with state-funded rebate programs and incentives, such a program comes at an opportune time.

Of course, Google also expects to make plenty of return on its investment.  Rick Needham, Google’s Director of Green Business Operations and Strategy, believes that SolarCity is “attractive enough for us to invest given the risks of the project.” Furthermore, Google will reap a 30% federal tax investment credit for installed solar systems. In addition, SolarCity’s CEO Lyndon Rive expects Google’s funding will allow the company to install between 7,000 and 9,000 new rooftop systems. “This is one of the first corporate investments into distributed solar. Historically, most of the investments have been made by the banks. These have a limited amonts of capital that they can distribute, which is a constraint for solar adoption,” says Rive.

SolarCity hopes Google investment will encourage other corporate investment in the solar panel market. According to Bloomberg New Energy Finance, less than 0.1% of U.S. homes have rooftop solar panels today, however, that number is expected to increase to 2.4% by 2020.  Investments like Google’s are important market drivers in the demand for clean energy and renewable technologies and it will be interesting to see how much of an impact Google continues to have in this arena.  Countries like Germany, for example, have already pioneered the rapid installation of resident solar panels through widespread government subsidies and incentives and China is not far behind.  The US, however, continues to shift between the push for cleaner energy and our continued reliance on fossil fuels.  Corporate investments, such as Google’s, may be just the message the US needs in order to help kick-start a sluggish national clean energy economy.