Sunlight Financial secures $50 million equity raise

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Sunlight Financial is on a roll. Since 2015 the company has raised at least $1.6 billion to deploy loans for homeowners to install solar through its technology platform. But while this money was largely in the form of loan funds, this week Sunlight brought in additional capital to support its core functions and expand its offerings, in the form of a $50 million in equity from investment firm FTV Capital.

Sunlight says that it will use the money to “expand its product suite, enhance its technology platform, add strategic partners, and deepen existing partnerships”. Sunlight’s model involves partnering with solar, battery and roofing companies to provide loans to homeowners through its platform.

As part of the transaction, FTV Managing Partner Brad Bernstein and VP Mike Vostrizansky have joined Sunlight’s board of directors.

As the U.S. residential market moves increasingly away from third-party solar towards direct purchases, it opens up more market space for loan providers. According to its latest Solar Marketplace Intel Report, Sunlight joined the 10 largest loan providers on EnergySage’s network in 2016, as the market began to diversify.

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