SolarCity (SCTY) announced on Thursday that it has created a new investment program with BofA Merrill Lynch (BAC) to finance an estimated $400 million in solar power projects in 2014 and 2015.

As a result, thousands of American homeowners will be able to install solar panels with no up-front cost and pay less for solar electricity than they currently pay for utility power.

SolarCity is based in San Mateo, California, and provides renewable electricity directly to homeowners, businesses and government organizations for less than they spend on utility bills. 

Currently the company provides one out of every three new residential solar power systems in the U.S. 

As for BofA Merrill Lynch, the new program falls in line with its prior commitment to finance more than $200 million in commercial solar power projects and is part of Bank of America's current 10-year, $50 billion environmental business goal to advance lower-carbon economic solutions through lending, equipment finance, capital markets and advisory activities, and investment advice and solutions for clients around the world.

Since 2007, the bank has dedicated $31.7 billion to low-carbon and other environmental business activities.