Mosaic Solar Loans First in the Asset Class to Hold ‘AAA’ Rating

Three classes of Mosaic ABS outstanding notes totaling $143.5M upgraded to ‘AAA’ by Kroll Bond Rating Agency

OAKLAND, Calif., Oct. 19, 2023 /PRNewswire/ — Mosaic, a leading fintech platform for U.S. residential solar and energy-efficient home improvements, announced today that Kroll Bond Rating Agency (KBRA) has upgraded three classes of notes collateralized by Mosaic-originated loans representing $143.5M to ‘AAA’ from ‘AA-‘. This marks the first time that bonds backed by residential solar loans have been given a ‘AAA’ rating.

“As the longest-tenured residential solar loan issuer, this upgrade is a testament to the strength of Mosaic’s underwriting and the consistency of our performance over more than nine years,” said Patrick Moore, Mosaic CEO. “This milestone for the residential solar loan market is also a critical step in the evolution of the sector, paving the way for self-sustained ‘AAA’ issuance in the near future.”

Head of Deutsche Bank Alternative ABS Robert Sannicandro said, “Deutsche Bank was thrilled to work with Mosaic and KBRA to achieve this major vote of confidence for the sector. Achieving a ‘AAA’ rating puts Mosaic and solar loans into the realm of well-established ABS asset classes such as auto loans and leases, credit cards and student loans. The solar loan ABS asset class has meaningfully supported the nation’s continued clean energy transition.”

The ‘AAA’ rating upgrade illustrates that the residential solar loan market is well-positioned to deliver strong performance well into the future. Clean energy home improvements typically attract financially savvy consumers with above average credit scores and income, reducing credit risk. Residential solar is expected to show continued growth through 2027, according to the Wood Mackenzie U.S. Solar Market Insight: 2022 year-in-review report. 

Since 2014, Mosaic has been originating and servicing consumer loans used for the purchase of residential solar systems. The company created the industry’s first 20-year and 25-year solar loans, the first battery-only loan, and the first solar loan option with no payments for 18 months. Through nationwide solar system installer and dealer partners, Mosaic has funded over $14 billion in loans to homeowners across the United States for residential solar and sustainable home improvement. To date, the company has completed 18 securitizations, totaling more than $4.5 billion in offered securities in the ABS markets.

About Mosaic

Mosaic is an industry-leading fintech platform for sustainable home improvements. With deep, strategic partnerships and a network of thousands of contractors nationwide, we empower homeowners to unlock greater savings, resilience and value in their homes. Founded in 2010, Mosaic is a pioneer in clean energy lending and continues to provide innovative solutions for financing solar, battery storage, heat pumps and more. We doubled our funding volume in 2022 and have funded $14 billion in loans to date, helping more than 370,000 households make their homes more sustainable and save money on their utility bills. Our financing options unlock billions of dollars of capital annually into high-quality ESG assets. Join us in our vision of 100% clean energy for all at joinmosaic.com.

Financing applied for and processed through the Mosaic platform is originated by Solar Mosaic LLC or one of its lending/financing partners. Equal Housing Lender.

SOURCE Mosaic