WGL Holdings Invests in Residential Solar Installer

WGL Holdings, Inc. has executed a $50 million solar system investment agreement with California-based residential solar system installer, American Solar Direct Inc. (ASDI). Along with the agreement, WGL Holdings has also made a $5 million equity investment in ASDI's parent company, American Solar Direct Holdings Inc. (ASDHI), establishing a long-term strategic relationship.

"California is one of the most attractive geographic regions for the residential solar market across North America," said Terry McCallister, Chairman and CEO of WGL Holdings, Inc. "Gaining a foothold in this developing market is an important step in the pursuit of our vision of providing clean and efficient energy solutions to customers," McCallister said.

Under the investment agreement structure, ASDI will be responsible for marketing and installing residential solar systems. The partnership will then own and maintain the systems, receiving customers' monthly lease payments as well as federal and state incentives.

"As a more recently formed company, ASDI cannot itself receive some of the tax benefits associated with solar energy," said. Ravi Thuraisingham, President and CFO of ASDI.

ASDI offers a fixed rate lease plan that does not increase with inflation or utility prices. The lease rate includes maintenance, warranty service and cleaning.

Competitive supplier Washington Gas Energy Services has entered various financing and sale agreements with customer-sited solar in PJM.