Residential solar is moving from strength to strength in the U.S., mainly driven by a large drop in price, which has seen more property owners exploring options for solar investment. The industry has historically been driven by solar leases, but now solar loans are taking a larger share of the market, with Mosaic leading the way.
The news of a new $200 million warehouse facility for the California-based company is a signal of future intent, as it bids to become the leading residential solar loan provider in the U.S. Mosaic has raised the funds for the facility from DZ BANK and NY Green Bank, with the eventual syndicated warehouse expected to provide loans to more than 5,000 U.S. homeowners.
"Both DZ BANK and NY Green Bank have extensive experience as leading renewable energy financiers," said Billy Parish, founder and chief executive officer at Mosaic. "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.
"We identified this unique opportunity to leverage our experience in financing renewable energy solutions in the U.S., added Frank Schehl, Managing Director and Head of Asset Securitization at DZ BANK. We are confident that between Mosaic’s history of industry leadership and future aspirations, our partnership will continue to grow."
The rise of Mosaic
From humble beginnings as Solar Mosaic, the company has shown pioneering spirit, as it was the first company to launch crowdfunded solar in the U.S. and began providing solar loans in 2014. It believes in homeowners being able to own their own solar systems, and strives to provide the financial support that enables them to do so.
A recent triumph for the company came in November 2015, as it announced a partnership with Americas biggest solar lease provider, Vivant Solar, which may indicate a shift from solar leases to solar loans for homeowners in the U.S. Now, with the announcement of this new facility, Mosaic wants to continue to build, eyeing solar financing solutions of $1bn over the next year.
With 40 percent 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, contined Parish. The partnership with DZ BANK and NY Green Bank moves us towards our goal of having the ability to originate $1 billion in residential solar loans by the end of year to meet growing consumer demand for a simple, affordable, solar finance solution."