On Monday, Mosaic, formerly known as Solar Mosaic, launched their crowdfunding platform that enables the public to invest in solar projects. The site has been largely successful – within 24 hours, four projects that will bring solar power to affordable housing buildings in California and New York were fully funded. So far, Mosaic has been able to raise over $1 million in investments for solar projects on their platform.
Investors get an annual return of 4.5% with terms ranging between 7 and 9 years. The yields are competitive with other forms of investments available on the market. Investments made on the platform have been between $25 and $30,000. Since the SEC has not yet passed regulations implementing the crowdfunding provisions of the JOBS Act, to invest in Mosaic, individuals must have a personal relationship with the project or be “accredited investors.” Accredited investors must have at least a $200,000 annual net income in each of the last two years or $1 million net worth excluding equity in a primary residence.
There has been pent up demand for platforms, like Mosaic, to invest in projects that have a positive impact on society. While the passing of equity crowdfunding regulations is not essential for Mosaic to run their business (since it is currently relying on accredited investors), it will open the doors for many other Americans to invest in and profit from solar projects or causes that they believe in. The potential for equity crowdfunding is immense — if all Americans were to invest 1% of their savings in crowdfunded ventures, over $300 billion would go into the economy. This would help drive creativity and innovation, build jobs, and strengthen communities.