Research shows that in most cases, savings are much greater to the homeowner if the solar electric system is purchased rather than leased. Things moves quickly in the solar biz. SolarCity and Sunrun for the last several years have dominated the market while crowd funding was relegate to a fraction of the market. Nobody saw it as scale-able. But here it is, affordable, accessible financing for residential solar and it is now being offered on a mass scale. What we are seeing may represent a two pronged attack on the Solar residential PPA and Solar Lease juggernaut. With financing – the more homeowners will be able to take advantage of the government incentives and reap most of the savings from solar themselves. They also will not encumber their house with a 20 year lease agreement. Mosaic announced that it is joining forces with RGS Solar to offer crowd financing to RGS’ s customers who want to purchase their own solar electric systems. Mosaic offers reasonable priced financing via crowd funding. The crowd funding program will commence first in California.
Meanwhile on the east coast New York State just opened the New York Green Bank (“NY Green Bank”), the largest of its kind in the nation. The program will now offer solar loans to homeowners of up to $25,000 at an extremely low interest rate of around 3%. the application form is simple , and the loan payments can be made as part of the homeowners electric bill. The goal is to make loaning money cheap accessible and easy. The NY Green Bank is a division of NYSERDA and will have an initial capitalization of $210 million. This amount includes $165 million that was redirected from other clean-energy programs by the New York Public Service Commission from idle clean energy ratepayer funds, and an additional $50 million from emission allowance sales under the Regional Greenhouse Gas Initiative.
Governor Cuomo states that: