SolarCity Corp (NASDAQ:SCTY) has won big in its optimistic plan to start manufacturing solar panels after the Musk backed company secured 1.2 million square feet land at the RiverBend site, South Buffalo, New York, to construct a gigafactory to that effect.
The deal was announced by New York governor Andrew M. Cuomo through his official website.
SolarCity Corp (NASDAQ:SCTY) has traditionally been ordering solar panels from China’s affordable manufacturers, but has now taken a bold step to manufacture own solar panels using a high efficiency technology.
“SolarCity is getting into a business it has never been before,” said Angelo Zino, an analyst with Capital IQ while referring to the New York project.
The state of New York approved the project after a series of negotiations and went ahead to pledge $750 million for infrastructural development, facility construction, and equipment purchase. SolarCity Corp (NASDAQ:SCTY) will spend a total of $5 billion within the next ten years to complete the facility and have it fully operational.
The New York governor Andrew M. Cuomo was personal on the ground to official commission the project which is expected to create 3,000 jobs in Western New York and 5,000 across the state.
“This is bigger than anything we could have imagined. It is the perfect metaphor for Buffalo, where the fundamental strength was the available hydropower. That hydropower now, that renewable energy now, will fuel the renewable energy industry for the future. I am incredibly proud that the state is playing a role in this project, because Buffalo’s future is New York’s future, and today that future is brighter than ever,” the governor said.
The state has given SolarCity Corp (NASDAQ:SCTY) the lease for a renewable period of 10 years.
The project has been received well across several quarters with many agreeing that it’s really good news for Buffalo area and New York at large.
This article has been written by Victor Ochieng.