In the solar industry, we know that a solar system is a great asset - the equipment is valuable, under a long warranty, and if necessary, can be removed from the rooftop. On top of that, value from the generated power can be realized through either savings or direct resale. Obviously an asset, right? So why are most solar loans dependent on credit ratings, real estate value, personal assets? Why aren’t there more lenders offering secured solar loans that recognize the project itself as an important piece of collateral?
In short, data. The most common examples of asset-backed loans are home mortgages and car loans. In both of these examples, traditional lenders have access to huge amounts of data which allow them to determine exactly how much value they would be able to recover in the event of default. Unfortunately, this presents a bit of a chicken and egg problem for the solar industry: in order to gather sufficient amounts of data on the recoverable value of a defaulted system, a significant number of project-backed solar loan defaults need to occur, which means that significant number of project-backed solar loans need to be both issued and monitored. At Wunder, we strongly believe in the viability of project-backed financing, and we plan to prove it one solar loan at a time. Learn more about our loan products and collateralization method on the financing page. Or email us at firstname.lastname@example.org.
Information on this page is summary in nature, it is not an offer to invest, and it is not investment advice. Information on this site pertaining to an investment in a Wunder Fund is qualified in its entirety by the fund’s offering materials, which should be reviewed carefully prior to making an investment decision. Please see these documents for full details regarding the terms of the investment, risks, minimum investment, fees and expenses. Investors should conduct their own due diligence and are encouraged to consult with a financial advisor, attorney, accountant, and any other professional that can help investors to understand and assess the risks associated with any investment opportunity.
Investments are not guaranteed by Wunder Capital or any other entity, and may lose value. Past performance is not indicative of future earnings. Any investment returns stated on this website are projected returns and there is no guarantee that such returns will ultimately be realized.
Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these notes or determined if the offering materials are truthful or complete. Any representation to the contrary is a criminal offense.
Blog content may include statements from existing Wunder investors. Any such statements may not be representative of the experience of all clients, they are not a guarantee of future performance or success, and any opinions expressed are not those of The Wunder Company.