Rocket Seeks To Grow Solar Panel Market By Offering Loans
Rocket Companies Inc. will provide financing for solar panels and their installation, leveraging its technology that enables customers to obtain mortgages, find homes and obtain personal loans online.
As experts predict the booming housing and refinancing market could cool down, the Detroit-based mortgage giant has sought to expand into financial transactions in other sectors such as auto sales and now l ‘green energy. It presents its technology platform as a tool to facilitate tedious processes for consumers.
“Automation makes a difference in the customer experience,” said Joel Gurman, executive vice president of Rocket Mortgage. “It’s another one of those examples where he’s been around for 40 years, but he hasn’t necessarily taken the way he could or should or will. We’re not just looking to leverage existing technology, but to create a market.
A dedicated group of the company’s sales team will serve as solar advisors. They will help determine if solar panels are the best choice for customers’ homes and connect homeowners to a digital finance app. The sales team will also facilitate the installation of the solar panels.
Rocket will begin testing solar offerings in the fourth quarter. They could become available to the public in early 2022.
There have been more than 2 million solar installations in the United States, with the installation of panels reaching an all-time high in 2020, according to a joint study released earlier this year by the Solar Energy Industries Association and Wood Mackenzie. The report predicts that the country’s solar market could quadruple by 2030, with about one in eight U.S. homes being equipped with solar power by then. In addition, the federal government encourages consumer adoption with tax cuts.
But at the end of the day, Rocket is still looking to sell mortgages. The company also announced a new rate and term refinance product that gives homeowners with a solar panel loan, who often have higher rates than mortgages, the option to combine it with their mortgage for a single interest rate.
The solar panel offering is a natural progression for the nation’s largest mortgage lender, Gurman said.
“Rocket Mortgage is not only the nation’s largest mortgage finance provider, but one of the nation’s biggest marketing brands,” he said. “From a Rocket Loan, Home, Auto perspective, we’re helping people by taking a bit of a complicated process and really simplifying it.”
Workers install solar panels on the roof of a house January 4, 2020 in Granada Hills, California. Rocket Companies, a major mortgage lender, has announced that it will begin offering financing for the installation and solar panels.