Sunlight Financial, a provider of rooftop solar loans offered through solar installers, will expand its services and offerings thanks to a new, $130 million investment from Route 66 Ventures. The new investment will allow Sunlight to expand its Charlotte, NC, operations, introduce new financing products and partner with more solar installers.
“Route 66’s investment will accelerate Sunlight’s already rapid growth,” said Rob Peterson, a general partner at Route 66. His company is a private investment firm that invests credit and equity into high- growth companies in financial services. “We are impressed by Sunlight’s long-term perspective and experienced leadership team, which has deep expertise in both consumer credit and residential solar. Route 66 is excited to partner with Sunlight and help homeowners save money.”
Sunlight may not be a well-known name in the rooftop solar business like SolarCity (now Tesla) or Sungevity, but the company said that in eight years its secured more than $4 billion in capital to support rooftop solar power. Since it doesn’t offer an all-in-one service like some other rooftop solar providers that include financing with the equipment, it’s not a well-known brand.
Like Spruce Finance, Sunlight partners with local installers as their financing partner to provide loans to individual homeowners. As such, it’s more akin to the third-party that finances the loan or lease for a new vehicle. The loans are designed to make it easy for homeowners to go solar with a no up-front cost loan that reduces their costs of electricity at the same time.
Sunlight Financial’s wide range of loan products facilitates a homeowner’s decision to go solar. Solar installers and sales organizations nationwide access Sunlight’s products via an easy-to-use online platform, through which homeowners can apply for credit and sign loan documents.
“Loans have quickly become the preferred financing option for homeowners that choose to save money with rooftop solar,” said Matt Potere, CEO of Sunlight Financial. “In a fast-growing and fast-changing market, installers need a stable and strategic financing partner for the long-term. Route 66’s investment validates Sunlight’s unique combination of capital markets, risk management and residential solar expertise and supports our continued expansion throughout the United States.”
Loans are becoming a more attractive option for financing rooftop solar systems in the US. As opposed to solar leases or power-purchase agreements (PPAs), they allow the homeowner to assume ownership of the solar array and see the benefits of local and federal incentives directly instead of sharing those benefits with the leasing company or PPAs.Tweet