It is claimed to be the technology firm’s largest investment in renewable energy to date, and the second in Solar City. Google invested $280m in the solar energy company in 2011.
SolarCity’s new fund will be used to cover the cost of solar panels installations on homes in 14 states and the District of Columbia.
The homeowner are required to pay SolarCity for the energy generated by the solar panels, or monthly rent for the panels in the case of a lease.
Google renewable energy principal Sidd Mundra said: "We’re happy to support SolarCity’s mission to help families reduce their carbon footprint and energy costs.
"It’s good for the environment, good for families and also makes good business sense."
Several technology firms have recently unveiled plans to invest in global renewable projects.
In September 2014, Google agreed to provide $145m in equity financing for the 82MW Regulus solar plant in southern California, US.
Earlier in February 2015, Apple said it is investing $848m to purchase energy from the 280MW California Flats solar project, which is being developed by First Solar in Monterey County.
