RGS Energy, one of the true
pioneers in domestic solar hardware rollout with an impressive 19k solar
systems installed (over 170 MW) to date since inception back in 1978, is
partnering with long-time solar project investor aggregator, Mosaic (the first
company to offer such investments online), to offer American homeowners a
direct path to installing their own residential solar systems via the newly
created Mosaic Home Solar Loan.
This financing ramp
solution, implemented by two of the industry’s best possible players to pull
off something like this, gives homeowners a superb way to finance ownership of
their very own solar hardware, so they can start to generate their own 100%
clean renewable energy. Mosaic has allowed thousands of investors to
participate in and organized over $5.6M to date in capital for various
installations, including ones on charter schools and affordable housing, as
well as at a U.S. military base. Furthermore, Mosaic has an exceptionally clean
financial track record, with zero defaults and full 100% on-time payments back
to investors (4.4% to 7%), as well as impressive accolades that speak volumes
about the company, like the Sierra Club’s coveted Trailblazer Award (RGSE sold
one of the very first photovoltaic panels ever to the public here in the U.S.
and has really cleared a path for other operators).
This new loan is a first of
its kind as well, in that it is fully integrated into the existing sales
process pipeline, benefiting mightily from Mosaic’s intuitive and powerful web
software, while also spring boarding off RGSE’s overall reach in the market and
their impressive customer service envelope. This coalescing of several key
factors related to making it easier for homeowners to get into solar is a true
innovation and creates a pathway to solar installation that should really
jumpstart adoption of the technology by individual consumers. Also unique about
the program is the direct integration of the solar tax credit via so-called
“Choice Payments,” which helps to ensure that the payment process is not only
smooth, but that payments stay low from the get-go.
Being able to pay little to
nothing up front in order to benefit immediately from solar hardware via lower
energy bills and tax credits is a no-brainer; moreover, unlike a lease or power
purchase agreement, when it’s all said and done the homeowner gets free energy
from their hardware, making this deal truly sweet enough to whet the whistle of
many an American consumer, consumers who are already more than eager to get
their feet wet in solar on average. RGSE will start offering the new loan
product to homeowners in California as early as the first half of this year and
Mosaic will double down via investments in the Home Solar Loans offered to
qualifying investors via their website. These guys have the whole thing
stitched up nicely already it seems and it should be quite the well-targeted
offering.
Co-Founder and President of
Mosaic, Billy Parish, who also co-founded and grew the Energy Action Coalition
into the largest clean energy-focused youth organization in the world, touted
the 35 plus years of pioneering expertise by RGSE in the solar industry as a
clear indication that they have the right stuff to put this breakthrough solar
financing product into orbit. Parish stressed the optimum consumer dynamics
inherent in the solution, explaining that homeowners get all the upside of
ownership, yet with the benefits of a lease, all while opening up the process
itself to investors as a clear and highly-transparent market full of tangible
investments in the continually booming home solar space.
CEO of RGSE, Kam Mofid,
noted how this new product plays off the strong growth in demand for direct
ownership of hardware by homeowners and emphasized how the Mosaic Home Solar Loan
structure allows the individuals to own their solar hardware from day one.
Mofid explained that RGSE is all about attractive, affordable solar options
that fit the specific customer’s unique needs and thus the development of this
ramp solution specifically for the homeowner category seemed a natural
operational evolution for the company. High receptivity in the target market
amid a heightened background buzz of strong leasing in the broader solar market
could prove a real boon to RGSE shareholders and it will be quite interesting
to see how successful this product will become.
Senior VP over at notable
solar industry analyst GTM Research, Shayle Kann, who tracks the industry like
a hawk, noted a 50% jump in the residential U.S. solar market last year sandwiched
up alongside a continuing boom as we rail into 2014. With the prominent third
party ownership trend now waning as ownership has leveled off respectively in
the last few months, Kann made the case clear that the pump has been primed for
explosive growth in the residential solar loan market.
More on RGS Energy, a Real
Goods Solar, Inc. company, is available at www.RGSEnergy.com
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