Solar loans are the fastest-growing method of financing a solar panel installation your home or business. Across the country, more than half of all new solar installations are done with either a cash purchase or through a solar loan.
Mosaic is arguably the largest solar financing provider for homeowners in the country. If you’re comparing solar quotes from a few different solar installers, chances are you’ve encountered a loan option from Mosaic.
How Mosaic home solar loans work
Solar shoppers typically have a few different options to finance their solar panel installation. Those who are less concerned about maximizing their financial savings can sign a solar lease or PPA with a solar company. Homeowners who want to access the higher financial benefits that come from owning the system outright typically choose to buy it, either in cash or with a solar loan. These solar loans can come from a bank or a specialized solar lender.
Mosaic is a specialized lending company that offers loans to homeowners through their network of solar installers and contractors across the country. According to GTM Research, Mosaic is the largest specialized solar loan provider in the country. In the first half of 2017, 45 percent of solar loans in the United States came from Mosaic. Many of these loans come from the large-scale national solar installers, like SolarCity; however, local installers also use Mosaic to provide solar loans to their customers. Around 10 percent of quotes to shoppers in the EnergySage Solar Marketplace include a Mosaic solar loan option.
Mosaic solar loans are offered to homeowners through their solar installer network. When your installer creates a quote for a solar energy system installation, they often include a built-in financing option from a company like Mosaic.
Other Mosaic financing options: home batteries and whole-home energy efficiency
In addition to financing for solar panel systems, Mosaic offers financing options for other home energy upgrades, including home batteries and energy efficiency improvements. Qualified Mosaic customers now have access to loans for solar-plus-storage installations, as well as energy upgrades like energy efficient doors and windows, insulation, HVAC, roofing, and electric car charging stations.
Mosaic’s solar loan options
Every home solar installation is different, and Mosaic’s product offerings are customizable to customer needs. Loan amounts, terms, and interest rates will depend on the specifics of each installation.
Loan amounts
Mosaic offers loans of between $10,001 and $100,000, which accommodate the vast majority of home solar system installations. (The average cost of a solar panel installation in the U.S. in 2017 ranges from $11,060 to $22,100 depending on system size and location.)
Loan terms
Mosaic solar loan terms range from 10 to 20 years. Borrowers can pay off at any time with no prepayment penalties.
Some homeowners are willing to pay higher monthly payments in exchange for a shorter loan term. Others prefer a longer loan term so that they are cash flow positive from month one, meaning that their loan payments are lower than their monthly electricity bill savings. According to Mosaic, the company’s 20-year “PowerSwitch” loan is popular for that very reason.
Interest rates
Mosaic’s interest rates will vary based on the loan product selected. According to a Reuters article from April 2016, rates range from 2.49 to 7.99 percent, although product offerings may have changed since then.
Additional benefits of Mosaic loans
Unlike many traditional banks, Mosaic offers an all-digital process with near-instant approvals. The company has options for a broad spectrum of FICO scores and requires zero out-of-pocket, which means you won’t have to pay anything until your system is installed.
Mosaic also offers a dedicated in-house Customer Support team for homeowners who use Mosaic loans to finance their home energy upgrades.
Mosaic solar loans vs. traditional bank loans
As mentioned above, homeowners have a few different sources of financing for their solar projects. EnergySage solar shoppers who finance their purchase will typically choose either a loan from a traditional bank or a loan from a specialized lender like Mosaic. The type of loan you choose depends on your priorities.
Solar is a relatively new technology, and some traditional banks may be hesitant to provide financing for it. While this is less of an issue than it was a few years ago, the fact remains that a company like Mosaic that specializes in solar loans is sure to be prepared with answers to any solar lending-related questions you might have.
Another area where Mosaic shines is in its fast approval process. If you want to finance your solar installation with a home equity loan or line of credit, it can take several weeks for the loan to close, and you need to have significant equity in your home as well as a favorable debt-to-income ratio.
By comparison, while Mosaic only offers loans to qualified applicants, approvals can happen on the same day, making your solar financing process much smoother. As an added benefit, Mosaic does not use your home as collateral – unlike a home equity loan.
If you have a strong relationship with your local bank and they are willing to offer you solar financing through a home equity loan or line of credit, you may want to compare the long-term benefits of that option against Mosaic’s solar loan option.
Where to get a Mosaic solar loan for your home or business
Mosaic loans are offered through the company’s installer network, which means you have to work with your solar installer to finance with Mosaic. Many of the 400+ local installers who provide solar quotes on the EnergySage Solar Marketplace use Mosaic as their loan provider. If you’re interested in a loan from Mosaic, simply join EnergySage today and indicate Mosaic as your preferred lender when you register your property.
