Cleaner World Through Crowdfunding

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Dec. 23 (Bloomberg) -- President of Mosaic Bill Parish, discusses solar crowdfunding with Cory Johnson on Bloomberg Television's “Bloomberg West.” (Source: Bloomberg)

Solar projects that need the money.

I am joined now to talk about this interesting crowd funding model.

You described this business to me, and my job was on the ground.

Describe it to me.

Yes, mosaic is the first clean energy platform.

People go to the website, and they can browse projects, and those projects make money, and investors are paid back with interest.

You have been working on different ways to bring solar after you dropped out of college back east.

Which one was that?

You dropped out of college to do what?

To build the clean energy movement.

I think in this generation, we can shift from fossil fuels to clean energy.

We do not want to wait.

I think this is an interesting financial model.

Why do we need this model?

One of the things we hear from investors is they like the transparency of our investment.

Even more than the yield, we offer 4.5%, seven percent.

That ain't nothing in a zero interest rate environment.

These are good investments, and people like them.

They like the environmental performance, but more than anything, they like that they know what they are investing in, so at a high level, i think people do not like the opaque quality of other investments on the marketplace, and solar is something that is real.

They can go and visit it, and it generate strong returns for our investors.

For the people getting the panels on their rooftops, the companies getting the panels on their rooftops, what do they look like?

What kinds of businesses are they?

So there are a couple of leaders in the space.

Sun power.

Mostly residential.

Mostly residential, and they are offering people no money down, save money on your utility bills, a strong value proposition.

Solar city, and there are solar panels at my house i just paid for, but the solar city model, for example, they will not pay for the panels upfront.

We will get money from investors, and in a few years, you will own those panels on the house.

That is the model.

Instead of financing the panels, we allow people to finance the panels and then get paid back as those panels generate electricity.

We really do not know the panels going on the market right now.

What is it, and how is that affecting the business model?

Solar has been around since the late 1960's, and there are still panels that are still operating.

Most analysts say that the panels built today should last 30 or 40 years.

Most are warring teed for 25 years, so it is a proven technology, and the markets are that.

Let's call it a five percent yield and does that five percent pay in perpetuity, or does that pay during the warranty installation?

That is typically in the five to 10 year space, and people get principal and interest monthly, so it is similar to a fixed income type of investment.

And then at the end of that period, who is the owner of that panel?

Whoever develops the project.

One of the things we have seen is that making solar panels, it is so much greater, and one of the effects is the collapsing of prices, and a lot of the solar panels out there, that you are selling investors the opportunity to back, they do not have valid warranties anymore because companies have sold them.

Is that true, and is that a risk?

No, that is true.

-- you have zero default.

What is the transaction volume?

-- what is the size of the average loan?

It is in the $200,000 to $500,000 range.

So big enough for wealthy investors.

Exactly, and retail investors.

When he five dollars.

We are opening that up.

And you are putting all of the money together.

Exactly.

How do you make money?

We make an origination fee,

This text has been automatically generated. It may not be 100% accurate.

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