The solar energy industry is experiencing a significant shift as The Awareness Group (TAG) introduces groundbreaking financing solutions designed to make solar power more accessible to American homeowners. The company's innovative approach, which includes a Non-FICO Driven Residential Lease program and a new 30-year loan option, is already showing promising results and could potentially reshape the residential solar market.
TAG's Non-FICO Driven Residential Lease program, launched in July, has garnered substantial interest, with 475 solar projects signed, representing a total contract value of $36.9 million. This program's unique feature is the elimination of minimum credit score requirements, traditionally a significant barrier for many potential solar adopters. The company reports a notable increase in project signings, with 201 projects from July to September and a jump to 274 in October and November alone, indicating accelerating growth.
The implications of this new financing model are far-reaching. By removing credit score barriers, TAG is tapping into a previously underserved market segment. Traditional solar financing typically requires a minimum credit score between 600 and 650, effectively excluding a large portion of potential customers. TAG's approach could significantly increase solar adoption among low and moderate-income households, which currently represent 43% of U.S. households but only 15% of solar adopters.
Further expanding its financing options, TAG has introduced a 30-year loan program available in 26 states. This loan offers no dealer fees, potentially reducing project costs for homeowners by up to 40%. By spreading the cost over a longer period, TAG aims to make monthly payments more affordable, thereby increasing the appeal of solar installation to a broader range of homeowners.
The timing of these new financing options aligns with projected growth in the U.S. residential solar market. According to the Solar Energy Industries Association, the market is expected to grow at an average annual rate of 10% from 2025 to 2028. By 2030, it's anticipated that there will be 10 million residential solar systems in the U.S., more than double the current number.
TAG's innovative financing solutions could play a crucial role in accelerating this growth. By making solar more accessible and affordable, the company is positioning itself at the forefront of the renewable energy transition. The success of these programs could encourage other companies in the industry to develop similar inclusive financing options, potentially leading to a significant boost in solar adoption rates across the country.
The impact of TAG's financing innovations extends beyond the residential sector. The company is also making strides in the commercial solar market through a strategic partnership with Apollo Solar and Battery. This partnership positions TAG as the exclusive commercial finance arm for Apollo's clients and members of the Catalyst Network, a group of over 140 EPCs, equipment OEMs, and solar industry professionals nationwide.
As the solar industry continues to evolve, TAG's approach to financing could serve as a model for increasing accessibility and affordability in renewable energy. By addressing the financial barriers that have traditionally limited solar adoption, TAG is not only expanding its market share but also contributing to the broader goal of transitioning to cleaner energy sources. The success of these programs could have far-reaching implications for the solar industry, potentially accelerating the pace of renewable energy adoption and contributing to efforts to combat climate change.
