A Silicon Valley credit union upped its bet on solar energy Thursday, increasing its commitment to fund loans for installing solar panels on homes.
Technology Credit Union of San Jose, Calif., said it will commit $400 million a year to a loan program offered through Sunlight Financial, a New York company that specializes in 5- and 25-year loans originated by its network of solar installers. The commitment will fund about 15,000 loans, or about $26,700 per loan.
Tech CU ($2.4 billion in assets, 91,452 members) announced investments in September 2015 and May 2017 for a combined $500 million.
The higher investment came three days after President Trump announced tariffs on imported solar panels. The United States, once an innovator in the field, has lost its place: Few domestic manufacturers remain and installers now depend heavily on equipment made in China and elsewhere.
Sunlight Financial offers its partners an online platform that is accessible to them directly, or through a quick technical integration. Through Sunlight and Tech CU, homeowners can be instantly prequalified and approved for solar loans with lower monthly payments than their utility bills.
Todd Harris, CEO of Tech CU, said Tech CU is expanding its long-term partnership with Sunlight Financial, which he hopes will he hopes will bring in members who will open accounts or take out other loans.
“As our relationship with Sunlight continues to expand, we are able to help more and more homeowners save money, while at the same time protect the environment,” Harris said. “And over time, we have the opportunity to provide additional financial services from our comprehensive and competitively priced suite of products and services.”
Sunlight Financial partners with solar and battery installers, sales organizations and equipment distributors nationwide to provide them with a national platform for residential solar and energy storage lending. CEO Matt Potere said the company grew rapidly in 2017 and remains well capitalized.
“We look forward to continuing to expand our robust, multi-year partnership with Tech CU and providing funding for thousands more residential solar and storage systems, and the new roofs that may accompany them,” Potere said.
Sunlight Financial was among the top fundraisers last year residential and commercial solar projects, according to report released this month by Mercom Capital Group, a clean energy communications and consulting firm with offices in Austin, Texas and Bangalore, India.
Worldwide Sunlight Financial and 15 others raised $2.4 billion in 2017, down 50% from the $4.9 billion raised by 30 funds in 2016. However, total global corporate funding into the solar sector, including venture capital/private equity, debt financing, and public market financing, rose 41% to $12.8 billion in 2017.
