California utility Pacific Gas & Electric Corporation (PG&E) announced yesterday a deal with SolarCity that will enable homeowners and businesses to install solar energy systems with small or no upfront investment. Instead of owning the systems, customers pay a monthly fee to SolarCity, which owns the solar panels and can sell the electricity they generate. As the owner, SolarCity also benefits from local and federal tax incentives designed to lower solar installation costs. Customers may choose to either lease the system or enter into a power purchase agreement, whereby they purchase the electricity generated by the system at a predetermined rate.

Pacific Venture Capital, LLC, a subsidiary of PG&E, will provide so-called tax equity financing — to the tune of $60 million. It’s anticipated that about 1,000 solar installations — both residential and commercial — will be made possible over the coming year. A number of solar installation firms are starting to offer solar lease and power purchase agreement options to their customers. But PG&E said the deal is the first between a utility and a solar-financing company.

“This investment represents an opportunity to broaden access to renewable energy, consistent with our focus on advancing clean, low-carbon energy solutions and California’s goals to expand rooftop solar,” said Rand Rosenberg, PG&E Corporation Senior Vice President, Corporate Strategy and Development. “Equally significant,” he added, “it enables us to take an initial step toward gaining valuable experience with a technology and a marketplace that may become increasingly important in the future.”