Paramount Equity’s subsidiary Paramount Solar has partnered with U.S. Bank to create a new fund to support solar leases with Clean Power Finance. The new fund, the Paramount Energy Fund, will allow homeowners to finance solar projects through Paramount Solar. Paramount Solar in turn will use Clean Power Finance’s CPF Market, its software, underwriting and risk management services.
The new fund from Paramount is anticipated to finance approximately 1,600 residential solar systems. Since launching Paramount Solar in 2009, the company said that it has helped more than 6,000 families go solar. The company said demand has skyrocketed and it is now originating more than 500 residential systems a month. In the past it used multiple third-party financiers. “In 2013, the company, now reaching critical mass, is expanding into proprietary financing options,” Paramount Solar said.
Paramount Solar had previously used CPF Market to finance solar installations through other funds. “The introduction of this fund will allow Paramount Solar to continue in its substantial growth path,” says Hayes Barnard, CEO of Paramount Solar. “We have already seen great success with this product since its implementation in April and are confident in our ability to offer the best value proposition for the customer relative to any other financing package in the industry.”
Paramount Solar, which is already active in at least California and Arizona, plans to grow its solar customer base by more than 100 percent. At this point it’s expanding into states in the East Coast and Midwest.
Clean Power Finance said Paramount Solar is the sixth company to establish a residential solar finance fund that uses its CPF Market. “We created the CPF Market to enable our customers’ diverse business models,” said Nat Kreamer, CEO of Clean Power Finance. “The Paramount Energy Fund demonstrates the flexibility of our model and the variety of ways it helps our partners grow and expand their businesses. We are very excited that our specialized financing expertise will complement Paramount Solar’s outstanding solar marketing business as it launches its first fund to invest in residential solar.”
Clean Power Finance serves as a third-party owner, much like SolarCity or Sunrun or Sungevity, except that it serves as a white-label third-party owner. This allows solar installers to use financing from Clean Power Finance, but label it as their own brand. The company is further distinguishing itself by also offering its third-party ownership software platform to other companies. CPF Market offers services both for installers and financiers, from procuring materials to working with financiers, and solar companies like Paramount Solar, which installs and finances PV arrays.
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