Today (March 5) Mosaic and RGS Energy announced the launch of the Mosaic Home Solar Loan, a new alternative in the solar financing space. Under the loan offering Mosaic and RGS Energy will allow homeowners to go solar with little or no upfront costs.
However, what's unique about the loan program is that Mosaic will use its crowd funding approach to investing in the loan fund. Under the solar financing offering people can invest in the home solar loan fund. The companies plan to launch the new loan product to California homeowners in the first half of 2014.
The loan product offers an alternative to third-party ownership financing also known as solar leases or power-purchase agreements. Such vehicles have helped lead to a dramatic increase in the rise of residential solar installations across the U.S. “Residential solar installations grew over 50% in the U.S. in 2013 and continue to boom in 2014,” GTM Research Senior Vice President Shayle Kann.
“The majority of those installations have been owned by third parties,” Kann said. “The market share of third-party ownership has largely leveled off over the past six months, and we expect to see increasing availability and attractiveness of residential solar loan products this year.”
Hence the new offering by RGS Energy and Mosaic. The new product, unlike a a third-party option allows the homeowners access to all the energy provided by the system for free after the loan is repaid.
“RGS Energy’s national presence…makes them a fantastic partner to launch the Mosaic Home Solar Loan, a breakthrough solar financing product that generates cost savings for homeowners as well as profits for American investors,” contended Mosaic President and Co-founder Billy Parish. “Homeowners gain all the benefits of ownership with the simplicity of a lease, while investors gain access to transparent and tangible investments in the booming home solar market.”
“While we continue to see strong demand for the leasing of solar power systems, there is also increasing interest in direct ownership by the homeowner,” said RGS Energy CEO Kam Mofid. The loan offering allows homeowners to own their PV array from the start, without hefty up front costs. “This offering helps RGS Energy deliver attractive and affordable solar options, while recognizing that different customers require different solutions to meet their particular needs.”
The companies said that the loan offering is integrated into the online sales process seamlessly and uses a simple online loan application that can deliver results in minutes. The program also offers “Choice Payments,” which the companies said integrate the solar tax credit into the payment process.Tweet