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What is a Home Solar Loan and How Does it Work?

mosaic home solar loan

The Mosaic Home Solar Loan

In October of last year, Greentech Media released its research report on the most important trends in residential solar. Leading the list was a move from third-party ownership (TPO) via leasing models to direct sales of systems via loans. This week, Mosaic launched its home solar loan program, providing homeowners with a viable pathway towards ownership of the solar infrastructure placed on their roofs.

To inform its home solar finance product, Mosaic surveyed a diverse group of over 1,000 California homeowners. Among the findings, the survey showed that assuming similar savings and performance, homeowners preferred to own their own system with a loan rather than rent it with a lease with a margin greater than 2:1.

There are a myriad of reasons why homeowners prefer to own their solar systems. Among others, leasing a solar PV system provides the leasing company with an asset and the homeowner with a liability: The leasing company owns the system, and the renewable energy tax credit goes to them rather than the homeowner. If a homeowner wants to sell his or her house in the middle of the solar lease, complications can occur and the new homeowner may have to agree to assume the lease payments, having a potentially negative effect on the value of a property.

The Mosaic Home Solar Loan is a zero-down loan to homeowners interested in owning the solar infrastructure on their roofs. Homeowners save from day one as the monthly payments of the loan plus the reduced electricity bill are less than their electricity bill without solar. They are fixed payments, so as utility rates rise, monthly savings will increase. And there is no early payment penalty for homeowners who want to pay their loan off quickly. And to top it all off, the Mosaic Home Solar Loan application approval takes minutes online as opposed to weeks or months at a typical credit union.

  1. Homeowners can get a free consultation signing up here.
  2. After being approved for a loan, an estimate and agreement are drawn up by the solar installation company.
  3. Once terms are agreed upon, the loan documents are executed.
  4. The loan starts once the majority of the system has been installed. Within a month, the final permits and permission to operate (PTO) documents are submitted, and your system is connected to the grid.
  5. About one month after your system is installed and connected, you make your first loan repayment.
  6. Depending on when your system is installed relative to tax day, your investment tax credit (ITC) is applied within the first 18 months of your loan.
  7. Your loan summary, payments and other information are available for you to view and manage on the Mosaic portal whenever you like.

The Mosaic Home Solar Loan is the first of its kind and allows homeowners to reap all the benefits of ownership. You receive the tax credit rather than a third party. When the loan is paid off, the energy produced on the roof is free, period.

Have any questions and/or thoughts? Post them in the comments box below!


Daniel Stevens is a Political Science graduate from the University of Colorado at Boulder. After working briefly for a tech start up company, Daniel became focused on reporting the news and working in the solar energy industry. After working as a staff writer for a New York based PR firm, Daniel came to Mosaic to focus his writing on advancements in green and solar technologies.  He is passionate about social entrepreneurship and the power of new energy models to help alleviate many of the world’s problems. When not writing, Daniel can be found in the mountains, the ocean, or playing music. Follow him on twitter @dannystevens91.


  1. Andre Needham says:

    So, who is funding these loans? There haven’t been any investment offerings available through Mosaic all year. I’m sure you have many accredited investors who would be willing to help fund these loans. Any chance someone can make that happen?

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