Mosaic Loan: Is It A Good Solar Financing Option? [2022 Guide]

Mosaic Loan: Is It A Good Solar Financing Option? [2022 Guide]

In this EcoWatch guide on Mosaic Loans, you’ll learn: 

  • What a Mosaic loan is and what it can cover
  • Common Mosaic loan terms and average amounts
  • Various projects in Mosaic’s financing platform
  • Mosaic loan alternatives

This guide has helped many homeowners understand the options available through Mosaic Loan and can assist you in making the right choice for your home improvement financing provider. Let’s get started!

Find local solar quotes
Get Quote
Connect with approved solar installers in your area. Zero obligation.

Is a Mosaic Solar Loan a Good Financing Option?

Mosaic is one of the largest home improvement financing providers in the country, especially in the solar market. For context, the company has helped over 220,000 homeowners and just surpassed $7 billion in loans funded in April 2022.1

Passing that mark is not much of a shock considering the growing popularity of residential solar photovoltaic (PV) systems. In a recent press release, Billy Parish, CEO of Mosaic, said The urgency to deliver affordable financing options for our partners and homeowners is growing, and Mosaic is uniquely positioned to help lead this charge.”2

While Mosaic is a popular solar financing option, it’s not your only one. We’ve found the company has mixed reviews online, so if you’re asking yourself “Should I get a Mosaic loan?” you’re not alone.

In this review, we’ll cover everything you need to know about Mosaic loans and how it fares against other financial services.

Badge icon

SunPower

Best National Provider

Nationwide Service

EcoWatch rating

Average cost

Read full review now

Pros

  • Most efficient panels on the market
  • National coverage
  • Cradle to Cradle sustainability certification
  • Great warranty coverage

Cons

  • Expensive
  • Customer service varies by local dealer
Badge icon

Blue Raven Solar

Best Solar Financing

Regional Service

EcoWatch rating

Average cost

Read full review now

Pros

  • Industry-leading in-house financing
  • Competitive pricing
  • Excellent reputation

Cons

  • Doesn't offer solar batteries (coming 2022)
Badge icon

ADT Solar

Best Warranty Coverage

Regional Service

EcoWatch rating

Average cost

Read full review now

Pros

  • Industry-leading warranty coverage
  • Expansive service area

Cons

  • Some reported communication issues
  • No leases or PPAs

Watch this short video to gain a general understanding of Mosaic solar loans:

 

VIEW MORE

What Is a Mosaic Loan?

Mosaic is a lender for residential solar and energy-efficient home improvement projects. The finance company works with a wide network of solar installers who offer Mosaic’s loan products to solar energy customers.

Because each solar installation is different depending on factors unique to the home and homeowner, Mosaic offers different loan structures that can be customized with different pricing options.

According to its website, Mosaic has three loan structures for residential solar power systems — PowerSwitch ZERO, PowerSwitch CHOICE and PowerSwitch PLUS — which we’ve outlined below.

PowerSwitch ZERO3 PowerSwitch CHOICE4 PowerSwitch PLUS5 
  • No payments for 12 or 18 months, then a 10-, 15-, 20- or 25-year repayment term begins
  • No prepayment penalty
  • Available for solar projects, solar with batteries and solar for second homes and rentals, as well as other energy-efficiency upgrades and re-roofing
  • For homeowners who want to add solar energy systems and/or battery storage and want the option to take advantage of the federal Solar Investment Tax Credit (ITC)
  • Homeowners plan to pay down at least 26% in the first 17 months 
  • After 18 months, payments are adjusted upward if less than 26% has been paid or downward if more than 26% has been paid
  • For homeowners who want to add solar energy plus other improvement projects (HVAC, roof, doors, windows, etc.)
  • Good for homeowners who don’t plan on receiving the ITC
  • Standard monthly payments remain the same with one-time reamortization at month 18

Source: Joinmosaic.com

What Can a Mosaic Loan Cover?

While Mosaic is the largest solar loan underwriting company, it also provides financing for other sustainable home improvements, including energy efficiency upgrades and solar batteries for energy storage. Here’s a look at the projects covered under the financing platform:

mosaic loan tip
  • Solar Panels
  • Home Remodeling
  • HVAC
  • Roofing
  • Windows and Doors
  • Battery storage

Mosaic Loan Terms

The terms of Mosaic solar loans are pretty lengthy  ranging from 10 to 25 years. Borrowers can make payments on their loans ahead of schedule if they choose — there’s no prepayment penalty.

Many homeowners like to use the savings they achieve from their solar energy systems to pay off their loans. With an average solar payback period of between eight and 15 years, the terms of solar Mosaic loans may not seem so long after all.

What’s the Average Amount of a Mosaic Loan?

According to a 2016 Reuters article, Mosaic’s average loan amount is $30,000 with interest rates ranging from 2.49 to 7.99 percent.6 These figures may have changed in the interim but give you an idea of what to expect.

Mosaic does offer loans between $10,001 and $100,000, which is plenty to cover your home solar system. According to our solar calculator, the average cost of a nine-kilowatt solar panel system in the U.S. is roughly $24,000 ($16,758 after applying the federal solar tax credit).

VIEW MORE

Should You Get a Mosaic Loan?

It’s hard to give a general answer to this question, because the process of going solar is unique to each individual. For instance, some homeowners are okay with signing a solar lease because they want to switch to renewable energy to combat climate change and don’t care much about the financial incentives. Others choose to get a loan to enjoy the cost savings without having to shell out thousands up front.

The best way to maximize your solar benefits is to own your system outright, so we typically advise against going for a solar lease or PPA. Paying in cash is great if you can afford it, but we recognize that’s not feasible for many homeowners.
mosaic loan

Mosaic Loan Pros

If you’re looking to secure a solar loan, Mosaic is a good option. Because it specializes in solar loans, it’s more knowledgeable about solar than most banks or financial institutions. Plus, Mosaic is known for its quick approval process.

Another Mosaic pro the company has years of experience and hundreds of thousands of customers to back them up, according to CEO Billy Parish:

“We have been offering residential solar financing options longer than anyone else, which gives us more data with which to underwrite and price our loans. We’ve established ourselves as a leader in cost of funds through our disciplined approach and consistent performance, and we are passing the benefit of that advantage through to our customers.”7

Read Also: $7 Billion in Solar Power Loans Surpassed by Mosaic

Mosaic Loans Cons

A quick internet search will reveal negative customer experience reviews for Mosaic. We’ve found some less-than-ideal feedback on sites like Google and Yelp, with complaints about customer service or lack of transparency. However, there aren’t many positive reviews for most home improvement lenders, so that’s something to keep in mind.

In most cases, Mosaic loans are handed out through solar installers. That means lack of transparency or incorrect information could be the fault of the installer and not Mosaic. However, if quick and reliable customer service is important to you, this might be a reason to choose a traditional bank over Mosaic for a solar loan.

We’d advise you read the fine print on any solar loan contract and do your homework before signing on the dotted line. To start, check out our solar loan guide, where we outline how solar loans work and how to choose the best one for you.

Mosaic Solar Loan Alternatives

Check out this quick video to see some alternative solar financing options:

As we’ve mentioned, Mosaic is not your only solar financing option. If you choose to get a solar loan, you can typically choose between the following:

  • Unsecured personal loan
  • Home equity loan or line of credit
  • Solar financing through your solar company.

Some solar installers work with financial companies like Mosaic or with banks, while bigger solar companies like SunRun and SunPower have their own in-house solar financing options.

We also recommend checking in with your state and local governments. Some governments offer low-interest loan programs for clean energy systems that you can take advantage of, such as Property Assessed Clean Energy (PACE) loans. On the federal level, you have Fannie Mae’s HomeStyle® Energy mortgage.

If you’re interested in paying for a solar installation via a loan, make sure you research all low-interest financing options available to you. But whichever loan option you choose, be sure to pay special attention to your annual percentage rate (APR), origination fees and loan terms. How much you pay in interest, fees, and your repayment period will often increase the overall cost of your renewable energy system.

VIEW MORE
Blog author image
Kristina Zagame, Solar Expert
Article author
Kristina Zagame is a journalist and content writer with expertise in solar and other energy-related topics. Before joining EcoWatch, Kristina was a TV news reporter and producer, covering a wide variety of topics including West Coast wildfires and hurricane relief efforts. Kristina’s reporting has taken her all over the U.S., as well as to Puerto Rico and Chile.