There are a couple of implications from the new financing announcement. One is that SolarCity’s funding costs are getting higher over time, meaning it’s generating less value for investors. Another is that it’s selling most of the cash flows it will get from customers, meaning there’s less and less upside potential in the future.

The flip side is that SolarCity has been able to get funding for its projects, keeping the company’s operations afloat for now. That’s a positive as SolarCity attempts to be bought out by Tesla Motors and transitions its business from financing leases and power purchase agreements to selling solar systems to customers with third-party financed loans.

The final point may be most important for those looking at the company today. If SolarCity can transition to cash sales or loans, it will generate up-front cash, lessening its reliance on financing transactions. If that’s the case, today’s rising financing costs won’t matter nearly as much as they would otherwise. But that’s a lot for a company like SolarCity to juggle, especially in the middle of a buyout process.

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