Solar power in California is a ‘no-brainer’, with all the sun available in this gorgeous climate. However, solar installations are capital intensive and often difficult for consumers to finance. One Roof Energy has developed a new financing model which could drive further adoption of solar energy in California.
A common problem for the solar residential market is the capital cost of the installations. Potential customers might like the idea, and be sold on a system but find financing the project difficult. This inhibits the adoption of solar packages in a significant way.
A Great New Product To Expand The Residential Solar Market
One Roof Energy has a unique distribution model which works directly with roofing companies to lease and install solar power systems. The key consideration for the installation of solar panels is the quality of roof; therefore this partnership makes great sense. The company works almost exclusively in the residential sector and is a pioneer in putting solar panels on houses.
The new SolarSelect Lease from One Roof Energy removes the inhibitive capital expenditure associated with solar panels. Rather than paying a large lump sum to have the solar panels installed, customers can lease the equipment and installation, therefore making solar power affordable to a large new market of potential consumers. The benefits to the home owner are that the combined lease and energy bills are likely to be less than the cost of energy had been previously. The installation is covered by a warranty which covers both the roof and the solar installation, this will cut down on concerns over the risk of the installation and how it might affect the roof of a house.
New Financing
One Roof Energy has recently closed Series A financing, led by Hanwha International, part of the Hanwha Group - one of the largest corporate conglomerates in South Korea. This investment has been key to helping One Roof get into the solar leasing market.
One Roof Energy has also been working with Black Coral Capital to finance solar projects. Black Coral Capital is a subsidiary of U.S. Bancorp and provides the capital required for the lease financing program. This capital is what allows customers to lease the solar installations without incurring large costs.
“We believe that the most efficient and cost-effective way to install a solar system is at the time a roof is built or rebuilt and our first-round investment partners agree,” said David Field, the President and CEO of OneRoof Energy. “Customers can now enjoy all the benefits of going solar without the upfront costs and on-going maintenance expense. Our product and model will significantly increase the number of homeowners installing solar power systems.”
The new SolarSelect lease will make it much easier for home owners to opt for solar systems. With one major solar installer taking this route, we can hope that others will follow suit and offer the same kind of leasing arrangement around their innovative solar or clean energy offerings. Products such as these will lead to greater growth in the CleanTech market, and wider adoption of services.