SAN FRANCISCO - Residential solar company SunRun closed a Series B round of funding for $18 million led by Accel Partners and joined by existing investor, Foundation Capital.

The San Francisco-based company, founded in 2007, said it plans to use the funding to expand into new markets.

SunRun expanded its solar-as-a-service business to Massachusetts and Arizona in early 2009.

SunRun provides turnkey residential solar systems with minimal start-up costs as low as $1,000. Customers do not own the systems, but instead buy the electricity at a fixed rate from SunRun.

This funding round follows U.S. Bancorp's (NYSE: USB) commitment in November 2008 for project financing for up to $105 million in solar facilities and a $12 million Series A financing led by Foundation Capital in June 2008.

Accel Partners is also an investor in the popular social-networking site Facebook, and it is expected that Accel will assist SunRun in online marketing efforts.

"Getting solar is one of the most important things homeowners can do to make a positive impact on their local environment and monthly expenses," said Ed Fenster, CEO of SunRun. "Most people don't have $30,000 to spend on solar equipment or want to worry about taking care of a $50,000 asset. SunRun makes solar a reality for people who wouldn't otherwise have considered it."

The Company has experienced rapid growth since its founding in early 2007, marked by expansions outside of its initial California market and into Massachusetts and Arizona in early 2009, and has achieved 300 percent growth in 2009. 

This funding round follows U.S. Bancorp's commitment in November 2008 for project financing for up to $105 million in solar facilities and a $12 million Series A financing led by Foundation Capital in June 2008.

SunRun says it provides an easy and affordable solution for homeowners to switch to solar power by delivering immediate savings on utility bills with minimal start-up cost. For as little as $1,000 down, SunRun will arrange to purchase customized home solar equipment from an authorized local solar contractor and then sell the solar electricity at a fixed, discounted rate to the homeowner's current electricity bill. Over time, as utility rates increase, the homeowner accumulates significant savings.

"Getting solar is one of the most important things homeowners can do to make a positive impact on their local environment and monthly expenses," said Ed Fenster, CEO of SunRun. "Most people don't have $30,000 to spend on solar equipment or want to worry about taking care of a $50,000 asset. SunRun makes solar a reality for people who wouldn't otherwise have considered it, and we're finally at the point where it makes financial sense as well as environmental sense for a majority of homes.'

CEO Edward Fenster and President Lynn Jurich started SunRun as classmates at Stanford's Graduate School of Business with the mission of making renewable energy both affordable and economically viable. The Company's first system was on the roof of Edward's home in San Francisco, and today SunRun provides solar electricity to more than a thousand customers.

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