In the past most large funds that solar installers or financiers have announced have been made with banks. Now a new partnership with Digital Federal Credit Union (DCU) in Massachusetts and Sungage Financial has created a new $100 million residential solar loan program.
The new solar loan program allows homeowners to get access to low-cost solar financing with no up-front cost. At this point Sungage is offering solar financing in Connecticut. The company will expand its operations to serve solar installers and homeowners in Massachusetts, New Jersey, and New York. The company plans to expand the offering to additional markets through the U.S. in 2015. With the new financing capability it could finance solar power on approximately 4,000 homes across the nation.
"We are very excited to partner with DCU, one of the nation's leading credit unions. Our platform, combined with DCU's local, regional, and national reach, as well as their consumer lending expertise, makes it easier than ever for homeowners to go solar and save money,” said Sylvain Mansier, Sungage CFO and co-founder. “We believe this will be a market-leading program."
Sungage previously launched a secured loan for solar installations in 2013. Under the offering homeowners can get a no money down loan for a solar array, allowing them to own the array as opposed to leasing it. The loan allows the solar array to serve as the collateral for the loan so no home equity is required. The company also has partnered with Mosaic to crowdsource residential solar array funding for in Connecticut, launching a $5 million fund earlier this year.
Under the new offering homeowners access Sungage’s online Solar Savings Plan where they can asses whether or not solar panels make sense for their home as well as apply for credit online. After that they can access the program by contacting installers in Sungage's installer network.
"The partnership provides homeowners with the opportunity to get efficient and reliable solar technology at an affordable cost,” said Debbie Taverna, vice president of Consumer Lending at DCU. ”Bringing continued value, cost savings, and new product offerings is at the foundation of DCU and what we offer to businesses, consumers and our members."