Residential solar financing platform Mosaic today announced it has surpassed $4 billion in loans funded through the company’s platform. The company has also added no payments for 18 months and a 25-year loan term to its PowerSwitch ZERO solar financing offering. The product also has the choice of a 12-month, zero-payment promotional period, and 10-, 15- or 20-year installment terms with no prepayment penalty.
“No payments for 18 months and a lower monthly payment will make it even easier for homeowners to convert to clean energy,” said Billy Parish, founder and CEO of Mosaic. “Mosaic was the first to create 20-year and 25-year solar loans, the first to create battery-only and solar roofing loan products. We were the first to offer a no-payment solar loan option, and this is the next generation of our ongoing innovation. We will continue to anticipate market needs and design new solutions for our partners that enable them to be agile and remain competitive.”
“Last year was an unusual time, but solar loans have proven to be a strong asset through this credit cycle, COVID and the economic challenges the market faced in 2020,” said Patrick Moore, president and COO of Mosaic. “We closed asset-backed securitizations of $222 million and $280 million in 2020, both of which were multiple times oversubscribed. We now have multiple years of historical data, and the financial markets recognize Mosaic’s consistent performance and disciplined approach to delivering long-term value. This has strengthened our relationship with capital markets and reduced our cost of capital, which allows Mosaic to pass along lower rates to homeowners.”
News item from Mosaic
It appears that Mosaic does indeed have lower loan rates than many banks, that want to put you into the high interest home improvement loans of around 6% to 11% APY. Mosaic seems to offer some loan instruments at 1.99% for solar PV and energy storage for 25 years. It offers another option, if one doesn’t mind having a “second mortgage” on their home or are going to do more, like new roof, HVAC, solar PV and energy storage, then rates go up. It is cheaper than trying to use a credit card(s) for upgrades and can be specifically tailored for solar PV and ESS. As loans and debt goes, less is more. The less you are spending on paying off a loan, the more money in your monthly household budget is left to take care of those reoccurring payments, electricity doesn’t have to be one of the monthly costs.
Mosaic solar loans, while secured, are not secured by a lien on the home but rather by a UCC filing on the equipment only. Learn more here: https://www.joinmosaic.com/2020/01/16/understanding-liens-and-selling-your-home/