Solar loan financier Mosaic announced that it has closed on a $250 million loan with Deutsche Bank for a warehouse facility, a short-term line of credit that uses revolving loans as collateral. The arrangement combined with recent upsizing of its warehouse and liquidation of existing loans are increasing Mosaic’s solar loan capacity to $550 million.
Having recently procured an equity financing round of up to $220 million this August and an additional financing agreement for another warehouse facility in this April, Mosaic has become a major solar player by creating loan program agreements with 21 out of the 25 of the largest solar installers in the US.
"More and more homeowners are looking for an effective path to energy savings. The credit facility with Deutsche Bank provides meaningful capacity to fund the growing demand for residential solar projects,” said Billy Parish, founder and chief executive officer at Mosaic.
Solar loans are becoming increasingly popular compared to other mechanisms for financing home solar, like PPAs and leases. In a PPA customers are, over a fixed period of time, paying for the solar array by paying for the power produced by the solar array on their rooftop to a third party that owns the system. Similarly, in a solar lease, they’re paying a fixed monthly payment to a third party that owns the system.
In a solar loan, the home or business owner uses the loan to pay for solar equipment and is granted ownership of the equipment when it is installed. The solar loan also allows them to directly benefit from incentives including the 30 percent investment tax credit and any other local incentive programs.
Mosaic works with more than 250 solar installers across the US. Through this network of solar developers and installers, customers are able to finance no-money-down loans with fixed interest rates. The company also provides customers with multiple billing and installation options.
"Solar loans are becoming a more common financing choice for people that purchase solar panel systems, and we're pleased to work with industry leaders like Solar Mosaic to advance this growing asset class," said Rob Sannicandro, director at Deutsche Bank.
As the solar industry grows and the cost of solar equipment and installation decreases across the US, innovative financing options for homeowners and businesses continue to come to the surface. Recognizing the need to offer more financing options, even the largest home solar company, SolarCity has recently reintroduced a solar loan product through its MyPower program that provide customers with low-interest rates and options to pay as little as $50 per month for solar services.Tweet