Westinghouse Solar Gets $100 Million for Residential Solar Installations

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Residential solar loans continue to gain traction around the country, with GTM Research predicting an uptick in solar ownership. Among the companies offering this option is the subsidiary of global solar provider CBD Energy (NASDAQ: CBDE), Westinghouse Solar, which began offering the loans with the May debut of its residential solar business in the U.S.

In July, the company announced it had obtained about $300,000 in loan approvals for residential solar systems. Now, Westinghouse Solar has secured more financing for its U.S. residential solar customers, to the tune of up to $100 million. Under the financing arrangement, Westinghouse Solar customers can apply for a solar loan at competitive interest rates.

Gerry McGowan, Executive Chairman of CBD, commented, “This arrangement with an established finance provider will allow our Westinghouse Solar customers to install and own their own system.” Among the many benefits of the system for customers, McGowan noted that “no upfront cash outlay and the savings in power costs will more than cover their monthly repayment.”

Of course, the arrangement also brings benefits to the company: “We believe this product will provide the Company with significant sales and growth opportunities,” said McGowan. “Upon loan approval, CBD will receive up to 50% of the sales price of a system with the balance paid on installation, which will greatly improve our working capital position.”

James Greer, SVP of Westinghouse Solar, added, “We recently established our residential Westinghouse Solar business in Massachusetts and are seeing a great response so far. We believe the residential solar business has the potential to experience significant growth as we look to build our footprint in the US into 2015 and the availability of up to $100 million in financing will ensure that Westinghouse Solar can deliver our products to our customers on a competitive basis.”

The solar system financing solutions offered by Westinghouse Solar are subject to certain conditions and credit approvals. They are underwritten, serviced, and owned by third-party financing sources — and neither CBD nor Westinghouse Solar retains financial exposure to loan delinquencies or defaults.