Sungage Financial and Digital Federal Credit Union (DCU), both based in Massachusetts, have launched a $100 million residential solar loan program.
Through this partnership, DCU will use Sungage's online platform and installer network to finance solar installations for its customers. Under Sungage's secured solar loan, the solar energy system serves as the collateral, so no home equity is required.
Sara Ross, CEO and co-founder of Sungage, says the relationship with DCU is intended to build on recent partnerships with the Connecticut Clean Energy Investment Authority and Mosaic to develop a diverse range of financing options for potential residential solar customers. Ross says DCU's status as a federally licensed institution will help the company reach beyond its current regional focus.
Sungage, which currently offers a solar finance program in Connecticut, will first expand its operations to serve installers and homeowners in Massachusetts, New Jersey and New York. In 2015, Sungage will expand to additional active solar markets across the U.S.
According to Ross, solar energy systems are not as unique an asset as they once were, making ownership an attractive alternative to leasing for homeowners.
‘The maturing solar marketplace is opening up new and inexpensive sources of capital to finance projects,’ she says. ‘This is making the pendulum swing back toward solar asset ownership.’