Mosaic inked a deal this week to sell $300 million of its rooftop solar loans to Goldman Sachs Bank, which will allow the financier to invest in more rooftop solar while providing long-term returns on investment for the bank. The deal will expand Mosaic's capacity for future loan funding commitments from banks and credit unions to $800 million in addition to $650 million that it already has in committed borrowing capacity from its existing partners.
Mosaic is among a handful of companies that provide third-party loans and solar financing to other rooftop solar installers. When it launched, however, it aimed to create a crowdsourcing platform for solar projects, including residential solar.
Whereas other companies like Sunrun and SolarCity, for instance, have raised billions to finance rooftop and commercial solar installations for their companies. But Mosaic, like Spruce Finance, works with banks, financial institutions and other solar installers to offer so-called white-label financing options.
"This purchase commitment further strengthens Mosaic's position as the most trusted home energy financing platform in the US with diversified sources of capital," said Billy Parish, CEO of Mosaic. "We are excited to work with a leading bank that shares our passion for providing clean energy financing solutions to homeowners.”
Under the agreement, Goldman Sachs Bank will purchase the $300 million in loans over time, GreenTech Media (GTM) reported. The organization reported that Amir Friedman, Mosaic’s vice president of bank partnerships, that it’s hard to meet the standards of a bank, but that Mosaic was able to meet all of Goldman Sachs’ requirements, making the bank comfortable with Mosaic’s portfolio of solar loans. By working with the bank to purchase the loans, it will not only serve as a chance to prove that its able to meet banks’ stringent requests, but will also show banks that its approach works.
It’s also among a handful of companies, again like SolarCity, that have been able to securitize the rooftop solar projects that it’s financed, allowing it to sell assets to reduce its balance sheet so it can sell more solar rooftops.Tweet