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Wunder explains how fintech is changing the commercial solar market. Wunder believes that, "The commercial market segment is not installing solar nearly as rapidly as residential and utility-scale. Reasons for this are myriad and complex, but one of the most agreed upon hurdles in this market is limited access to affordable capital." Access to capital is one of the main problems that fintech startups are trying to solve and many of the new marketplace or balance sheet lenders are succeeding. Wunder is betting that they can apply the lessons from online lenders to help the commercial solar market grow quicker.
First, a lack of cost-effective finance options in the first decade of solar’s growth, caused originators, financing entities, service providers and the market at large to view the only attractive commercial customers as those capable of paying cash or boasting investment-grade credit. This amplified the initial lack of focus on the mid-sized commercial solar market. Second, the manual and customized nature of project review means that each financed project is not contributing towards a scalable model, as opposed to the contribution that each home mortgage, car loan, or credit card is making towards the collective understanding of its relevant capital market. Just because we can’t currently use a standardized FICO score or Moody’s rating to evaluate the risk of an unrated solar project does not mean we should resign ourselves to a commercial solar market that is stunted by a...
http://blog.wundercapital.com/2016/04/20/why-commercial-solar-needs-fintech-2/
