Following a July announcement, Clean Power Finance, Inc. and Kilowatt Financial LLC consummated their merger in December and now operate under the moniker Spruce Finance.
According to the press announcement, Spruce operates as a nationwide provider of consumer financing for residential solar systems and water conservation and energy efficiency home improvements in the US. To date, the company reports raising more than $2 billion in capital to help more than 50,000 homeowners improve their residences.
Spruce CEO Nat Kreamer said, “Spruce is a nationwide one-stop-shop for financing that helps consumers save money on all of their utility bills. We offer solar financing in 18 states and water and energy efficiency home improvement financing in all 50 states.”
Among banking players in the new concern, add US Bank subsidiary US Bancorp Community Development Corporation to the ledger. US Bank presently stands as one of the largest tax equity providers in this country’s residential solar market. This US Bank participation is expected to allow Spruce to finance approximately $175 million in residential solar systems across 12 states during 2016. This is no small feat as homeowners and contractors push to finance renewable energy and energy efficiency options.
According to Spruce, its partners will have access to a variety of finance products. Presently, nearly 400 channel and contractor partners can offer Spruce’s consumer financing. Spruce partners include companies selling and installing PV systems, general contractors, roofers, insulation and HVAC experts, and equipment manufacturers.
Concerning the financing scope of the new entity, Kreamer was cited in a Greentech Media article: “If a consumer wants to go solar but also needs a new roof or wants to put in LED lights, the classic solar guys can’t do that.”
Senior solar market analyst Nicole Litvak provided a big-picture perspective.
“With about half of U.S. residential solar now installed by vertically integrated companies, there is growing pressure on partner-model financiers to compete for the business of the remaining installers. This merger was likely an effort to reduce this competition by consolidating installer networks, as well as financial products.”
Image via Spruce Finance
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