Mosaic just issue a press release about their “robust package of new loan products, technology & services”. This was the first company to use crowd-sourcing to finance solar projects, and I had the opportunity to ask Communications Manager Katie Ullmann some questions about how Mosaic’s Home Solar Loan Program works.
Question: How long have you been financing crowdsourced solar investments? Are there others doing this now?
KU: Mosaic was the first company to crowdsource investments to finance solar projects in America. We started with a zero interest model in 2011. The first offering with a return on investment was in January of 2013. At that point Mosaic sold out its entire portfolio of over $300,000 in 24 hours. Mosaic continued to rapidly sell out projects – about $7M in 2013. Mosaic proved out retail consumer demand (from retail investors) to invest in solar assets.
There are now a few startups working on similar models and large solar developers have started packaging their debt to create similar products for retail investors.
Question: In Mosaic’s press release it says the new online portal can take as little as 2 minutes to navigate from start to finish. I assume this refers to the application, so how long does the average approval take?
Approval can take just a few seconds. We do a credit check on homeowners.
Question: What kind of interest is Mosaic charging?
These rates vary. We have multiple products. One of the Mosaic Home Solar Loan products currently has the lowest monthly payments of any home solar loan product we know of on the market. Others are built to maximize total savings with a shorter term.
Question: Do you have a comparative for the payments for someone using Mosaic’s system, versus someone who uses their normal utility?
Yes! Sending a chart over right after this.
Question: Has Mosaic ever turned anyone down because of their bad credit? If so, what is the standard?
Yes, we have denied homeowners based on credit score. However, our minimum is not public.