Mosaic announced on Feb. 6 that it partnered with Connecticut’s green bank, the Clean Energy Finance and Investment Authority (CEFIA) and Sungage Financial to fund $5 million in crowdsourced loans for solar installations.
Over the past year or so Mosaic has announced numerous projects throughout the U.S., from New Jersey to California and elsewhere, all of which are crowd funded. Most of these projects were for municipal buildings, schools and more. Now it is taking the capability to crowdsource solar to the residential solar market, allowing people to invest in other people’s solar power systems.
Mosaic said it’s the first such product introduced and uses projected energy savings as the basis for the loans. “Mosaic sees great potential in the home solar finance space and is excited about this partnership,” said Greg Rosen, CIO of Mosaic and former VP of Solar Finance at Union Bank.
“This partnership is creating an entirely new ecosystem for solar financing in which individuals can take part in and benefit from home solar installations,” said Sylvain Mansier, CFO and co-founder of Sungage Financial. Sungage Financial helps homeowners to apply for and contract financing for solar installations. “This new loan product represents the next generation of solar financing and Sungage Financial is thrilled to be partnering with CEFIA, Hampshire Foundation, and Mosaic to help homeowners save more through solar ownership.”
The loans are being offered by participating Connecticut solar installers and include guarantees on system performance, allowing homeowners assurance that there will be money to pay for the loans. The Hampshire Foundation made an early commitment to invest $1 million in the loans and is participating in the transaction with Mosaic.
The initial investment of $5 million for the fund was provided by CEFIA. “This transaction represents what a Green Bank is designed to do,” said Bert Hunter, CIO of CEFIA. “Together with Sungage, we created a residential solar loan product that is easy to access and optimized for solar. We then went out and sourced investment partners who understand the industry and recognize the value of these consumer loans with the green bank aggregating these loans and providing critical credit enhancements.”
People can invest in the loan pool through Mosaic’s Web site. Investments will carry a 15-year term and yields of approximately 5 percent, Mosaic said.Tweet