Solar Mosaic, a former crowdfunding start-up that has emerged as a major provider of residential solar financing solutions, has secured US$200 million in funding that will support at least 5,000 rooftop PV installations.
Germany’s DZ bank is lead lender in the warehouse facility financing with NY Green Bank participating in the syndicate to extend residential solar in New York.
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The announcement on Wednesday marks the largest funding to date for the Oakland, California-based company, and further fuels its mission to empower homeowners through independent energy options and providing the financial support needed to fully benefit from owning their own solar system.
Mosaic has grown in the last two years to become a major US loan provider for residential solar installations, with an average loan around US$30,000 with interest rates between 2.49% and 7.99%. The company offers its loans through some of the nation’s biggest installers including Vivint Solar, SunPower Corp and NRG Energy.
Founded in 2011, Mosaic has now transitioned within the industry as it captivates access to institutional investors, with ambitions to raise US$1 billion in home solar loans by 2017. With the introduction of solar loans, the US residential market has grown tremendously, as it allows residents to own their own PV system and claim federal tax credits.
“Both DZ BANK and NY Green Bank have extensive experience as leading renewable energy financiers,” said Billy Parish, founder and CEO of Mosaic, in a statement. “DZ BANK and NY Green Bank's committed, relationship-driven approach was a natural fit for Mosaic as we looked to build our largest warehouse credit facility to date. With 40% consecutive monthly growth for over a year, we needed partners who could take us to the next level and help us grow as we continue to see the inevitable and rapid transition from fossil-fuel based electricity to rooftop generation of solar energy. Guggenheim was instrumental in helping us to find the right lending partners to support our business plan. The partnership with DZ BANK and NY Green Bank moves us towards our goal of having the ability to originate US$1 billion in residential solar loans by the end of year to meet growing consumer demand for a simple, affordable, solar finance solution.”
