Solar Energy Systems, Net

3 Months Ended

Mar. 31, 2017

Solar Energy Systems Disclosure [Abstract]

Note 5. Solar Energy Systems, net

Solar energy systems, net consists of the following (in thousands):

	March 31, 2017			December 31, 2016
Solar energy system equipment costs	$	2,637,668		$	2,459,856
Inverters		275,267			260,011
Initial direct costs		125,980			117,587
Total solar energy systems		3,038,915			2,837,454
Less: accumulated depreciation and amortization		(330,427	)		(303,305	)
Add: construction-in-progress		81,936			95,217
Total solar energy systems, net	$	2,790,424		$	2,629,366

All solar energy systems, construction-in-progress and inverters have been leased to or are subject to signed Customer Agreements with customers. The Company recorded depreciation expense related to solar energy systems of $27.6 million and $20.4 million for the three months ended March 31, 2017 and 2016, respectively. The depreciation expense was reduced by the amortization of deferred grants of $2.0 million and $4.0 million for the three months ended March 31, 2017 and 2016, respectively.