Residential solar lending programs, like any lending program, carry certain risks. Here are some potential risks to consider:

1. Default risk: The risk that a borrower will not repay the loan as agreed. This could happen if the borrower experiences financial difficulties or if the solar panel installation does not result in the expected savings.
2. Market risk: The risk that the market for solar panels will change, affecting the value of the installation. For example, changes in government policy or competition from new technologies could make solar panels less attractive.
3. Technology risk: The risk that the solar panels or other components of the installation will not perform as expected, resulting in lower energy savings than projected.
4. Interest rate risk: The risk that changes in interest rates could affect the profitability of the lending program.
5. Regulatory risk: The risk that changes in regulations or laws could impact the lending program, such as changes to tax credits or subsidies for renewable energy.

It's important for lenders to carefully evaluate and manage these risks to ensure the long-term viability of the lending program. This may involve conducting thorough credit checks, requiring certain standards for the solar panel installation, and monitoring market and regulatory changes.

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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