Sungage Financial is partnering with Massachusetts-based Digital Federal Credit Union (DCU) to provide $100 million in solar loans to residential customers in Massachusetts, Connecticut, New York and New Jersey looking to install PV systems on their homes.
Sungage and DCU are expected to expand the program to other states next year. The Boston-based Sungage aims to finance some 4,000 PV installations through the program.
Prior to partnering with DCU, the Boston-based Sungage took part in a pilot solar loan program offered by Connecticuts Clean Energy Finance and Investment Authority (CEFIA), also known as the Connecticut Green Bank (CT Green Bank).
"We are witnessing a solar boom in Connecticut," Sungage co-founder and CEO Sara Ross said. "Over the past two years, Sungage has worked with CT Green Bank to successfully grow our business and help more homeowners access affordable, solar energy. We are excited to be entering this new phase of our business and are grateful to CT Green Bank for its support in getting us to this point."
According to the CT Green Bank, Sungages participation in the CT Solar Loan pilot program led to its partnership with DCU. The CT Green Bank’s support of Sungage led to tremendous success and a positive growth outlook for the company, which attracted DCU’s $100 million commitment, the CT Green Bank said.
The CT Green Bank created the CT Solar Loan pilot in 2012, which it describes as the industry’s first dedicated solar loan product not linked to a specific solar panel manufacturer nor requiring any home equity or lien on the home. The Green Bank provided a $300,000 loan loss reserve, $1 million of subordinated debt and a $5 million warehouse for the CT Solar Loan.
The CT Green Bank tapped Sungage to serve as the CT Solar Loans program administrator. The program provides homeowners with the opportunity to own solar PV with a small down payment and low monthly payments. Since March 2013, CT Solar Loan has financed over 200 projects, totaling nearly $5 million in loans while deploying more than 1700 kW of clean energy throughout the state.