Mosaic, one of the leading providers of solar loans in the US residential market, will now offer a 12-month non-payment option, joining other solar providers, including SunPower, Sunrun and Vivint Solar, in offering interest rate deals. reduced amid the coronavirus pandemic.
All of these companies have touted their offerings as a way to attract customers at a time when owners are concerned about their finances and boost sales amid the COVID-19 crisis. Unlike previously announced offerings, Mosaic’s new product, called PowerSwitch Zero, is permanent.
âMoney is tight for families right now,â said Mosaic CEO Billy Parish.
âWe expect tough economic times to continue for some time,â Parish told Greentech Media. âSo we think the PowerSwitch Zero product will provide value for years to come and could actually change the basic financial product solutions for solar installation. “
Wood Mackenzie solar analyst Bryan White said the offer could put pressure on other loan competitors to follow suit; Mosaic now ranks third in the growing solar lending market behind Loanpal and Sunlight Financial. Mosaic offering free solar power could also encourage solar installers and suppliers who have already introduced similar offers to expand their own offerings.
âIt is remarkable, and perhaps a little surprising, that this is a permanent product and not a promotional product,â White said. âIt is certainly poised to grab the attention of potential solar energy customers, not to mention installation partners who navigate the harsh environment of COVID-19. “
Mosaic back to employment after spring layoffs
In addition to solar and solar storage plus, Mosaic’s new loan can finance stand-alone batteries and some home energy efficiency projects. The new product covers Mosaic’s 10, 15 and 20 year loans, adding one free year to these contract terms. Mosaic’s director of loans, Erin Talbot, said PowerSwitch Zero may also be extended to the company’s 25-year offering at a later date, as Mosaic assesses customer interest.
âI also want to give this product time to market to get a feel for whereâ¦ owners gravitate to,â said Talbot. “[We] I really want to see how battery fixation rates continue to rise and how homeowners are or are not taking advantage of the possibility of further energy efficiency upgrades.
After seeing business slow this spring and a few layoffs, Parish said Mosaic had returned to hiring and on-demand levels before COVID-19.
Residential solar activity has taken a nosedive as the coronavirus began to spread in the United States this spring, with homeowners tightening budgets and local governments shutting down facilities during certain times.
But in recent weeks, many residential solar companies have signaled that times are shaping up to be less gloomy, with solar installation widely deemed essential in many jurisdictions and US residents accepting the reality of a virus that will likely persist into the future. predictable. In second-quarter earnings reports released in recent weeks, companies haven’t reported a drop in residential installations as large as the 25% cuts analysts were predicting for 2020.
With the industry apparently rebounding, but still struggling to cope with lingering uncertainty over the pandemic, Mosaic’s Talbot said the company would not be surprised to see other financiers follow suit with options. similar.
âWill it be reproduced? History would say yes, âshe said.