The two new options, 0.99% APR for a 20-year loan and 1.99% APR for a 25-year loan, come at a time when installers and homeowners are increasingly cost-conscious, especially given the impending reduction in ITC.
Just two months after launching PowerSwitch Zero, a loan with a 12-month promotional period during which customers do not have to make payments on the system, Mosaic announced two new residential solar loans: a 0 loan. , 99% APR over 20 years and a Loan of 1.99% APR over 25 years.
Both new offerings are aimed at cost-conscious consumers who have realized the benefits of owning solar power during the pandemic.
The two new loan offerings were made possible by the completion of Mosaic’s eighth asset-backed securitization, a $ 222 million offer placed with more than 20 unique investors.
It is this investor confidence in Mosaic’s loan assets and the strength of previous loan performance that has enabled the company to access lower financing costs, allowing Mosaic to offer the new rates, according to the report. CEO Billy Parish.
“We are very excited about these new products. »Parish says pv magazine United States. “They represent the lowest finance rates the market has ever seen. The 0.99%, 20 year product is the lowest APR that we think will be available for a long term product like this, as is the 1.99%, 25 year product. These products and the new tariffs we are bringing to market bring the average cost of an average solar project to less than $ 100 per month, which means customers enjoy very affordable monthly payments and further our mission of making l solar energy accessible to all. “
This is the third new loan offering that Mosaic has launched this year, which has come conveniently as many homeowners assess their spending habits in the wake of the economic downturn caused by Covid-19. However, unlike PowerSwitch Zero, these two new offerings were developed not only to address the issues brought on by the pandemic, but also other challenges facing new customers, such as the reduction in the tax credit for the Federal investment (CII) scheduled to take place in January.
“We are looking at a likely decrease in ITC from 26% to 22% next year and these new products and lower prices across the board are absorbing some of that impact,” Parish said. “They allow entrepreneurs to offer similar monthly payments, even with the ITC reduction. “
According to Parish, it was not only homeowners that Mosaic had in mind when developing the new offerings, but also installers who are facing downturns in business in light of the pandemic and the impending reduction in air pollution. ITC.
“We think it’s a win-win,” Parish explained. This certainly allows entrepreneurs to offer more affordable rates to make it easier for clients to tell and it reduces the borrower’s monthly payment. As people decide whether or not to opt for solar power, they will now see lower monthly payments than they saw in the past, making it more attractive and saving them money.
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