Friday, March 07, 2014: India has had the motto of environmental concern on a backburner, while the country relied for decades on coal to provide power for the growing industry and fast-expanding cities. US-based Mosaic has partnered with established rooftop solar installer RGS Energy, to provide zero-deposit loans to home owners, who want to buy a solar energy system.
Reportedly, the country decided to yield on the renewable sources about three years ago. With zero solar power capacity, India added 2.2 GW of solar to its electricity grid. The capacity added in the last three years accounts to power 20 million Indian homes.
These loans will be backed by small-investor capital from Mosaic’s online crowd-sourcing platform. This platform is already granting money to moderate-sized solar arrays on farms, grocery stores, military housing and schools from coast to coast. The “Mosaic Home Solar Loan” is likely to help displacement of solar customers that opt for rooftop solar leases and power purchase agreements, with no or little money as down payment.
According to UTSandiego, “Unlike a lease, a loan offers ownership,” said the Mosaic president and co-founder Billy Parish. “Homeowners build equity in their home solar system over time. A large benefit comes after the loan is paid off, when homeowners continue to get free energy for up to 25 more years, rather than renewing a lease. An immediate benefit is that the solar system increases the value of one’s home,” he added.
The new loan offerings, if approved, will be available before mid of this year. The other major solar financing companies include Sungevity and OneRoof Energy, that are offering loan options alongside solar leases. The approximate interest rate on certain Mosaic loans are forecast at 8 per cent. The loans will have 20 year terms period with early pay-off options to increase savings.
With the Mosaic loan announcement, RGS shares closed up 9.5 per cent from the previous day at $4.14. Solar has become more affordable with less equipment costs and other efficiencies. An installation costs around $20,000 to $30,000.
