Otovo launches first solar loan in the Nordics
Starting in February 2017, Otovo can offer our customers access to a unique solar loan customized for their solar energy needs.
The new solar loan offer will be delivered in collaboration with Norwegian bank SpareBank 1, and with multiple sign-ups in the first week the offer has already proven popular with Otovo customers.
Solar loans on the rise
In the US solar loans have been gaining market share from solar leasing and third party ownership in recent years, and is now the most popular form of financing of solar PV. Agile solar loan providers such as Sungevity and Mosaic Solar have been able to grow without the financing constraints of retaining solar assets on the balance sheet.
Equally important, debt investors are showing an appetite for securitized solar loans, with Mosaic experiencing an oversubscription level of 5.6 times the offering size for their February issue of an A rated green bond backed by residential solar loans.
Zero money down - key in early markets
The Norwegian residential solar market is very much in its early days, with approximately 1000 solar households (active or under installation) across the country, up from 300 a year ago.
Otovo has been the dominant sales channel for residential solar in 2016, and has seen its growth boosted by the lease/subscription offer which has represented roughly 75 percent of sales.
Otovo is convinced that removing the hurdle of an up front investment is key to driving growth in immature markets. The solar loan offered by SpareBank 1 comes at a low 5.5 % interest rate and no setup fee. The moderate interest rate and comparatively low cost per installed watt means Otovo can offer solar power prices with LCOEs below fully loaded prices in the most populous regions in Norway.
With our solar loan offer we confirm our role as the category leader for residential solar energy in Norway.
Otovo solar loan offer on display for an Oslo address on otovo.no's configuration page, featuring a 6.97 €c/kWh (0.79 kr/kWh) offer including financing.
Contact:
- CFO, Lars Syse Christiansen: lasy@otovo.com
- CEO, Andreas Thorsheim: athornor@otovo.com