By Cassandra Sweet Credit Suisse Group AG (CS) plans to invest $300 million in rooftop solar-power systems installed on U.S. homes and businesses. The bank pledged $200 million to back residential solar-power installations developed by Sunrun, and said separately that it would invest another $100 million in residential and commercial solar projects developed by SolarCity Corp. Banks such as Credit Suisse and U.S. Bancorp (USB), and corporations such as Google Inc. (GOOG) and KKR & Co. L.P. (KKR), have invested hundreds of millions of dollars in rooftop solar systems over the last year as a way to earn a profit while supporting clean energy. Developing and owning residential solar-panel systems have become far more lucrative than making the equipment. That is because investors can take advantage of federal and state subsidies, such as tax credits, while prices for solar panels have plunged over the last two years. Rooftop solar projects have an advantage over large solar farms because they compete against retail electricity prices that utilities charge their customers. Those prices tend to be much higher than wholesale power prices that utilities pay for electricity from solar farms and other power plants. "The residential solar market is thriving right now, and the model Sunrun created for affordable home solar is driving that success," Jerry Smith, managing director of the Credit Suisse Strategic Transactions Group, said in a statement. Solar-panel makers, by contrast, have seen their profits and stock prices battered, as panel prices have fallen amid a global supply glut. Those who build and buy solar-panel systems, however, are enjoying lower prices for panels and other components, while taking advantage of government subsidies, including a federal tax credit equal to 30% of the cost of each system and fees that utilities in several states are required to pay for rooftop solar power through net-metering programs. Write to Cassandra Sweet at cassandra.sweet@dowjones.com Subscribe to WSJ: http://online.wsj.com?mod=djnwires
