Banks and credit unions could consider starting a residential solar lending program as it can be a potential area of growth for them, but there are various factors that they should consider before making a decision.

One of the main factors to consider is the current demand for residential solar systems in the market. If the demand is high and increasing, then a solar lending program could be a good opportunity for banks to tap into this growing market.

Another factor to consider is the financial viability of such a program. Banks should carefully evaluate the risks and rewards of offering loans for solar installations, including the creditworthiness of potential borrowers and the potential return on investment for the bank.

Additionally, banks should consider the regulatory environment, as there may be certain state and federal laws and regulations that govern lending for renewable energy projects. Banks should also ensure that they have the necessary expertise and resources to evaluate and underwrite loans for solar installations.

Overall, if banks believe that a residential solar lending program aligns with their business strategy and they are able to mitigate the risks, it could be a viable opportunity for them to expand their lending portfolio and support the growth of renewable energy.

For more information regarding the benefits and risks of starting a solar lending program, Schedule time with Atmos Financial.

Atmos builds bespoke best-in-class solar lending programs for lenders in as little as a few weeks. Through Atmos, banks and credit unions earn fee income, an attractive NIM, minimize program operating costs and acquire high-potential customers.

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