Sungage Financial, CEFIA, and Mosaic Announce $5 Million Deal to Offer New, Crowdsourced Residential Solar Loans
BOSTON, ROCKY HILL, Conn. & OAKLAND, Calif.--(BUSINESS WIRE)--The Clean Energy Finance and Investment Authority (CEFIA), Connecticut’s green bank, Mosaic, a solar finance crowdsourcing company, and Sungage Financial, a platform that enables homeowners to efficiently apply, qualify, and contract for solar financing, have agreed to a $5 million deal to offer homeowners crowdsourced loans for solar installations.
“We’re excited to work with CEFIA, Sungage Financial and the Hampshire Foundation to help Connecticut homeowners finance their solar systems with capital from people across the nation. Mosaic sees great potential in the home solar finance space and is excited about this partnership.”
The loans will be provided to homeowners seeking energy cost savings through the installation of solar panels. The loan product, designed by Sungage Financial, is the first of its kind and uses projected energy savings as the basis for the loans. Offered through participating solar installers serving the Connecticut market, the loan offer incorporates key protections for the homeowner such as guarantees on system performance.
CEFIA has provided an initial $5 million commitment to fund originations of the consumer loans. Investments in the loan pool will be offered to investors at www.joinmosaic.com with a 15-year term and yields of approximately 5 percent to accredited investors. Mosaic will crowdsource investments from Americans to fund these loans and facilitate repayments to investors through its online marketplace. Hampshire Foundation, Inc., which made an early commitment to invest $1 million in the loans, is participating alongside Mosaic in the transaction.
Sylvain Mansier, CFO and co-founder of Sungage Financial, said: “This partnership is creating an entirely new ecosystem for solar financing in which individuals can take part in and benefit from home solar installations. This new loan product represents the next generation of solar financing and Sungage Financial is thrilled to be partnering with CEFIA, Hampshire Foundation, and Mosaic to help homeowners save more through solar ownership.”
Bert Hunter, CIO of CEFIA, said: “This transaction represents what a Green Bank is designed to do. Together with Sungage, we created a residential solar loan product that is easy to access and optimized for solar. We then went out and sourced investment partners who understand the industry and recognize the value of these consumer loans with the green bank aggregating these loans and providing critical credit enhancements.”
Greg Rosen, CIO of Mosaic and former VP of Solar Finance at Union Bank, said: “We’re excited to work with CEFIA, Sungage Financial and the Hampshire Foundation to help Connecticut homeowners finance their solar systems with capital from people across the nation. Mosaic sees great potential in the home solar finance space and is excited about this partnership.”
Mosaic is the first online marketplace to offer investments in solar projects. Mosaic, named the 5th most innovative energy startup by Fast Company, launched in January 2013 and has financed over $6M of solar projects with thousands of investors across the nation. To date, the company has had zero defaults and 100% on-time payments at 4.5-7% annually. For more information about Mosaic, please visit www.joinmosaic.com.
About Clean Energy Finance and Investment Authority
CEFIA was established by Connecticut’s General Assembly on July 1, 2011 through Public Act 11-80 as a quasi-public agency that supersedes the former Connecticut Clean Energy Fund (CCEF). CEFIA’s mission is to help ensure Connecticut’s energy security and community prosperity by realizing its environmental and economic opportunities through clean energy finance and investments. As the nation’s first state “Green Bank”, CEFIA leverages public and private funds to drive investment and scale-up clean energy deployment in Connecticut. For more information about CEFIA, please visit www.ctcleanenergy.com.
About Sungage Financial
Sungage Financial offers the first solar loan product for the residential marketplace. Headquartered in Boston, Massachusetts, Sungage Financial partners with leading solar installers and institutional investors to provide a proprietary online platform that enables homeowners to efficiently apply, qualify, and contract for solar financing. Sungage Financial, which is committed to helping homeowners save more from their homes’ solar panels, launched its first lending program in Connecticut in March 2013 through a partnership with the nation’s first green bank, the Clean Energy Finance and Investment Authority. For more information, please visit www.sungagefinancial.com.
About Hampshire Foundation, Inc.
Hampshire Foundation, Inc. (HF) is a Connecticut based foundation working both in Peru and the United States. HF deploys its resources in the form of grants, loans and impact investments to maximize its impact and reach its philanthropic goals. For more information, please visit www.hampshirefoundation.org.
The information contained herein does not constitute an offer to sell securities. Buying or selling securities from Solar Mosaic, Inc. or its affiliates can only be made by offering memorandum and related definitive agreements, which will be provided to qualified investors on a confidential basis at their request for their consideration in connection with such offering. Investment will involve significant risks, including loss of principal, and investment products will have limited liquidity options. None of the information contained in this document is a recommendation for investment in any securities.