Mosaic Raises $220 M to Continue to Provide Affordable Solar Financing
Homeowners who want to save money on their electric bills by going solar have more financing options than ever. Now, a new partnership between solar financing provider Mosaic and investment firm Warburg Pincus, is helping to ensure such options remain. Last week Warburg invested $220 million in equity financing, allowing Mosaic to continue offer home solar financing with no money down and fixed interest rates.
"Securing this investment from Warburg Pincus, one of the world's leading private equity firms, is a major validation for Mosaic and provides an open runway for growth," said Billy Parish, Mosaic CEO. "They are a uniquely qualified equity partner given their deep experience in the energy, technology and financial services sectors, and strong track record in supporting management teams to build businesses of scale – all of which will be invaluable to Mosaic as we pursue our vision to make clean energy accessible and affordable for everyone.”
"The US residential solar market is set to grow rapidly for the foreseeable future," says Saurabh Agarwal, principal in the Energy Group at Warburg Pincus. "Mosaic has quickly become the preferred partner for installers and consumers alike across the nation, and we look forward to working with Billy and his team to build the company and meet the growing demand in this space."
The rooftop solar market is continuing to grow rapidly. For instance nearly $200 million in funding was unlocked this past May through two separate rounds of residential project financing.
While Mosaic launched as a community-based solar company that financed commercial-scale solar projects at schools and community centers it launched into residential solar in 2014. At that point it partnered with PartnerRe an affiliate global insurer to support home solar loans and give homeowners a chance to own an array at a lower cost with lower interest rates. Since insurance companies seek lower-risk, long-term return on investments, they are an ideal partner for residential solar projects.
"The Mosaic team has built the country's top solar lending platform that offers a simple and affordable solar finance solution with a best-in-class customer experience," commented Arjun Thimmaya, Managing Director, Financial Services, Warburg Pincus. "We are excited about partnering with the company as it continues to grow its footprint in solar and adjacent verticals."
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