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SolarCity Corporation (SCTY - Snapshot Report) has teamed up with online homestay networking company, Airbnb, to offer solar discounts to the latter’s clients in a bid to promote the use of clean energy while lowering costs.

Details of the Partnership

As per the agreement, SolarCity will offer cashback of up to $1000 to Airbnb’s community members for installing residential solar systems. These rebates are eligible in all the 19 U.S. markets that SolarCity operates in.

In addition, both new and existing SolarCity customers will receive a $100 Airbnb travel credit.

Benefits Expected

It has been seen that home-sharing is significantly more sustainable as a way of travelling than conventional hotels. For instance, over the last year, tourists opting for Airbnb over hotels have led to a significant decline in the consumption of water and energy, greenhouse gas emissions, and waste generation. Through this partnership, the companies aim to encourage the conservation of natural resources and the environment.

As it is, solar power is much cheaper than conventional sources of energy. In addition, SolarCity ensures hassle-free electricity by handling everything including financing, permission requirements, installations and maintenance on behalf of customers. The average SolarCity solar power system is expected to displace over 150 metric tons of carbon dioxide pollution over its lifetime. The latest deal will give SolarCity access to Airbnb’s widespread customer base.

Under the partnership, Airbnb will offer travelers the option to stay in solar-powered homes, thus allowing them to support environmental conservation.

Solar Prospects in the U.S.

Global utilization of renewable energy is on the rise, thanks to its environment-friendly nature as well as growing awareness of its benefits. An U.S. Energy Information Administration (“EIA”) report indicates continued growth in utility-scale solar power capacity, which will average almost 13.3 gigawatt (“GW”) in the 2016–2017 period. Despite the rapid uptake though, solar will still constitute just 1% of the total U.S. utility-scale generation in 2017, indicating immense room for growth.

Per a current report from the EIA, solar will witness the highest demand among all other sources of clean energy. The report forecasts solar generation to increase to 246 GW in 2040 from the 2015 level of 25 GW.

Going forward, rising investments in the solar industry in the U.S. will benefit domestic solar companies like SolarCity, First Solar, Inc. (FSLR - Analyst Report) , Canadian Solar Inc. (CSIQ - Analyst Report) and SunPower Corporation (SPWR - Analyst Report) .

 Zacks Rank

SolarCity carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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