Next time you think you can spend some dime to save mother earth and yet earn in return, head over to Mosaic. A startup that will help you invest in solar energy. The company that started out as a Kickstarter project has now turned into a crowdfunding model for the solar industry in US where the investment yields returns and can be done by unaccredited investors. The investment amount can be as low as $25 and returns a decent interest. So investing in green tech won’t necessarily cost a fortune and is completely within a doable limit.
The model works in a very simple way. Projects that needs funding to go solar comes to Mosaic and if chosen are listed under projects. Next, the investors invest in the project with an expected return that for the recently completed projects were around 4.5% to 6.38%. Once the project funding is complete the amount is given as a loan on a long term basis and an interest amount is sought. Mosaic takes a cut from the interest while the rest goes to the investors pocket.
Due to certain tax policies the company is now operating in California and New York where unaccredited investors can invest. However, the accredited investors can invest more projects nationwide. The company is in talks to expand the make the investment option available for all in more states.
When you browse for projects to invest, you will find 9 projects that has already been funded including the 5 beta projects that had zero returns(no interest only principal amount refunded). A million dollars being the funding amount the company model is already earning dividends for parties interested. According to Billy Parish, “Our mission is to create abundant clean energy for and by the people,”. Considering what he aims for, it’s certainly a viable business model where both parties(project owner and investor), the middleman and the interest of green tech are in a winning condition.
Models like mosaic are a refreshing reminder to the fact that what once was strictly a bank business is now only limited by people’s interests. Parish rightly remarks,“We’re happy to be democratizing two of the world’s biggest industries – energy and finance.”.