Rocket Companies RKT is expanding into the solar energy installation market, with a new consulting service and loan option designed for homeowners incorporating solar energy into the residences.
Let The Sunshine In: The Detroit-headquartered fintech's Rocket Cloud Force will provide an advisory service to determine if solar panels are the best choice for a home. If the diagnosis is affirmative, this service will connect homeowners to a digital financing application. Once the financing is secured, the Rocket Cloud Force will work with homeowners to facilitate the solar installation.
The company is also rolling out a new refinancing loan option through Rocket Mortgage that enables homeowners to consolidate any solar panel loan with their mortgage into one low-interest rate. This new mortgage program gives homeowners the ability to leverage the full value of their existing federal solar Investment Tax Credit and any other qualifying local tax credits, the company added.
Here Comes The Sun: Rocket Companies is the country's largest mortgage lender, but offers services beyond that market, such as Rocket Auto and Rocket Loans.
In announcing these new offerings, Rocket Companies cited recent data that found more than 2 million solar installations took place in the U.S. last year, along with a forecast that nearly one in eight U.S. homes will be using solar energy by 2030.
“Rocket Companies is uniquely positioned to build trust and education in solar energy, simplifying the entire process through our platform,” said Jay Farner, vice chairman and CEO of Rocket Companies. “We have the technology and expertise to provide the best experience possible for homeowners who want to go green.”
Sundown, You Better Take Care: The current federal tax credit for solar panel systems installed before the end of 2022 is 26%. That rate will decline to 22% for projects completed by the end of 2023 and could disappear in 2024 unless Congress renews the tax credit.
Solar installation financing has traditionally been transacted through personal loans, home equity loans and home equity lines of credit. Two federal government programs, the Federal Housing Administration’s 203(k) loan and the Fannie Mae FNMA HomeStyle Renovation loan, enable borrowers to simultaneously finance the purchase of a home and the installation of solar panels.
RKT Price Action: Rocket's stock spiked to an intraday high of $18.39 on the news.
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