PGGM, the Netherlands’ second largest pension fund, has acquired a €200 million ($218 million) stake in a SolarCity portfolio.
The deal makes PGGM co-owner in 38,000 home solar systems across the U.S. with a 275-megawatt capacity. It marks PGGM’s first investment in decentralized energy generation.
The Dutch fund, which has more than €200 billion ($218 billion) in assets under management, will generate returns from the installation’s rental income, maintenance and financing.
SolarCity is revising its business strategy, under direction from Tesla, which acquired the home solar company in a $2 billion deal last year.
Tesla announced that it would phase out SolarCity’s door-to-door home sales, amid a slowdown in the market. The focus will shift to retail and online energy product sales.