Like so many areas of the economy, the solar industry has been hit hard by COVID-19. The need to socially distance to prevent the spread of the virus has challenged traditional in-person sales, and economic uncertainty has made many homeowners more cautious about spending cash to make major investments in their homes.
The result: after a record-setting Q1 to start the year, residential solar installers have reported declines in demand of over 50% in Q2, and WoodMackenzie Power & Renewables projects a total reduction in annual installations of about 25% over the course of 2020. This sudden reversal of momentum has been a major factor behind the loss of over 72,000 solar jobs since the beginning of the pandemic, according to the Solar Energy Industries Association.
Amidst all this, solar can still play a major role in our response to COVID-19. Homeowners are spending more time at home and seeing their electricity use increase as a result, making the energy bill savings of solar – and, in many cases, the added resilience of battery storage – more appealing than ever. Solar has also been one of the biggest job creators in America over the past decade, and a rebound of our industry could help power a broader economic recovery.
The emergence of home solar financing options helped drive the solar boom of the 2010s, and we think continued financing innovation will be a key to helping solar companies bounce back from the challenges of 2020. That’s why we’re incredibly excited to announce the launch of PowerSwitch ZERO, a breakthrough financing solution that can help installers get back to work building a brighter future for their customers.
The Need For ZERO
PowerSwitch ZERO allows installers to offer their customers access to an unmatched value proposition: go solar today with zero payments for the first 12 months*, followed by a choice of 10-, 15-, or 20-year loan terms after the promo period. This is an industry first for residential solar loans, and the latest example of Mosaic’s long history of leadership in expanding access to solar financing.
It’s also the right product for this unprecedented moment, allowing homeowners to start reducing energy costs saving immediately while simultaneously conserving their cash. PowerSwitch ZERO helps installers overcome the concerns of customers who want solar but are worried about spending right now, as well as an opportunity to re-open sales discussions that were interrupted due to COVID-19.
PowerSwitch ZERO also gives installers the flexibility to meet increasingly diverse customer needs. Homeowner interest in battery systems has been growing steadily in recent years, particularly in areas prone to wildfires or storms, and the pandemic has made this resilience even more vital. Customers may also need roof repairs related to their solar installation, or want installations on secondary or rental homes. PowerSwitch ZERO is a simple, all-in-one financing solution that covers all of these situations.
Finally, ensuring the safety of homeowners and sales staff alike is paramount to enabling a lasting solar recovery. By offering a contact-free, 100% online loan process from lead to loan signing, installers can build trust and comfort with their customers – and continue closing deals.
How ZERO Helps Installers
PowerSwitch ZERO gives you an industry-first offering to help your solar company stand out and close more deals, but the benefits for installers don’t end there. Like all of the financing solutions on the Mosaic platform, PowerSwitch ZERO was developed in collaboration with our installer partners, and we pride ourselves on building innovative tools that help you improve your business processes while meeting the ever-evolving needs of the market.
At the core of Mosaic’s financing platform is Portal 2X, our online sales tool that’s accessible from any mobile device or desktop computer. As part of the PowerSwitch ZERO launch, we’ve updated this industry-leading software to fit seamlessly into your sales process and make closing deals easier than ever. Features include:
- Streamlined application: With just a few clicks, you can quote, obtain a pre-approval decision for, apply for, and close PowerSwitch ZERO loans from any device.
- Fast approvals: Get final approval decisions faster than ever before, with loans typically approved nearly instantly.
- Flexible process: Portal 2X offers multiple paths to introduce financing into your sales process, including an option for customer pre-approval with a soft credit check.
- Sales pipeline access: Instant access to your sales pipeline, so all you need to sell and manage solar loans can fit in your pocket.
This fully online platform also meets today’s need for contact-free selling. Many installers have transitioned to online sales processes using tools like Zoom to meet with customers virtually, and Portal 2X fits right into this new paradigm. Beyond being an essential capability today, this ability to close deals online will also save installers unnecessary trips for in-person loan signings in the post-COVID-19 future.
A Partner You Can Count On
The economic uncertainty stemming from Covid-19 isn’t just impacting homeowners and installers; it’s also affecting many solar financing providers, some of whom have had to stop lending in recent months. Fortunately, you don’t have to worry about that when you partner with Mosaic, thanks to an unrivaled track record of originating over $3.5 billion in solar loans through our platform since 2012.
In fact, in June we closed our 8th loan securitization, with $280 million in residential solar loans backed by over 25 institutional investors including Deutsche Bank, BNP Paribas, and the Royal Bank of Canada. It’s a powerful expression of confidence from financial markets in Mosaic’s consistent performance and high-quality standards – and this deep financial backing means that our partners can count on us to be there for them even in today’s challenging conditions.
You can also trust that Mosaic will continue to innovate with our software as well as our platform’s loan offerings to meet the evolving needs of our partners and the market. Whether it’s today’s unprecedented global changes or the evolution of the solar and storage industry we’ve seen over the past 8 years, we’ve always listened to our partners and built the tools they need to adapt.
Our partners are essential to our mission of helping all Americans access the benefits of clean energy, and that mission has never been more important. That’s why we’ve made it easier than ever to partner with Mosaic, with an inclusive contractor approval process with no financials required and no documents to upload.
With the ability to offer PowerSwitch ZERO and our streamlined application process, It’s the perfect time to become a Mosaic partner – click here to learn more and get started.
* Interest accrues during the 12-month promotional period and is waived if the loan is paid in full by the end of that period. Otherwise, if the principal balance is not paid in full by the end of that period, interest will be charged from the start date of the loan.
All PowerSwitch Zero Loans made by WebBank, Member FDIC, Equal Housing Lender.