Today (June 14), Google Inc. (Nasdaq-GS: GOOG) and SolarCity announced that Google invested $280 million into a fund to support residential installations throughout the company’s service area. SolarCity has now attracted $1.28 billion in project financing through a total of 15 funds.

Google has now invested $680 million in renewable, but this is the first time that it’s investment will directly help others install solar for less. That’s including a $168 million investment in the Ivanpah Solar Electric Generating System announced earlier this year.

The Google financing will help SolarCity offer more leases in its existing markets, according to SolarCity spokesperson Jonathan Bass.

SolarCity offers business and residential solar leases and/or power-purchase agreements in Arizona, California, Colorado, D.C., Maryland, Massachusetts, New York, New Jersey, Pennsylvania and Texas.

“We see a lot of potential for growth in our existing markets. We do expect to expand possibly to one or two additional states later this year. But it’s primarily for existing markets,” he said.

SolarCity doesn’t just do residential and commercial project financing. It’s also a full-service solar installer. It has installed utility, commercial and institutional-scale solar systems, Bass said.

“These are project-finance funds. We partner with financing partners to create funds to provide solar financing options to customers,” Bass said. “Some of the earlier funds are completed. We’ve created 15 funds with seven different partners. We’ll continue to create new funds.”

The funds have allowed SolarCity to increase the amount of installations it completes and expand its workforce. Over the past six months the company has hired 600 new employees, according to Bass.

“The thing that’s great about these is it’s a return for the investor,” Bass said. “It’s a safe stable return over the life of the fund.”

“One of the things that we’re really excited about with Google is it’s a non-banking company; it’s not a financial institution,” Bass said. The majority of investors in these types of projects have been financial institutions, like the $40 million in project financing it received in February of this year from Citigroup Inc. (NYSE: C). “We think this is an example that other companies can follow.”

In Google’s press release, posted on its blog, the company called the investment a quadruple win.

“Here is an example of an investment that can create jobs and a good return. It’s beneficial for the environment and beneficial to the end-user,” Bass said.

Image courtesy of SolarCity.