SolarCity shares skyrocket in initial public offering

NEW YORK Shares of rooftop solar installer SolarCity (SCTY) are surging in their market debut after the offer priced well below its original expectations.

The stock in Thursday trading is up $3.60, or 45 percent, to $11.60.

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The San Mateo, Calif., company announced in a statement on Wednesday that it had cut its expectations for the offer.

SolarCity issued 11.5 million shares at $8 per share, for proceeds of $92 million. The company had originally hoped to offer 10.1 million shares at $13 to $15 per share, with proceeds of $141 million.

SolarCity offers homeowners a "solar lease" that allows them to pay for the panels and electricity that they generate over time, often for less than it would cost to buy electricity from a local utility.