Solar Mosaic has proven that the people want renewable energy – the startup company just funded three new projects in one day via crowd funding! Through a crowd funding campaign that began on Monday, the new company offered New York and California residents a chance to support a project that would install solar panel roofs in three affordable housing complexes in California. The people have spoken – in just one day, 400 investors doled out $313,000 through the crowd funding campaign.Photo via Wikimedia Commons
Most crowd funding campaigns reward donors with one-time incentives, such as a product or service. But Solar Mosaic’s campaign is much more rewarding than that for its investors. The completed solar panel projects will generate revenue as utilities within the three building complexes. Owners of each building will sign a twenty year contract with Solar Mosaic, who will charge a lower than standard electric utility fee each month.
Whether donating $25 or $30,000, investors will receive a 4.5 percent annual return over a nine-year term. The initial start-up money will go to installing the panels in three areas of California – Corte Madera, Salinas and San Bruno. Each month, investors are paid their incentive percentage with money collected from tenants’ monthly electric bill.
Solar Mosaic also has projects funded by accredited investors (which were also allowed to invest in the campaign). The company has thus far raised $1.1 million for solar roof projects from private investors for installation of projects, as well as $2.5 million from venture funding for company operations. In little time, the startup is proving to be a successful private renewable energy utility company.