In many regions, with the continued growth of solar energy, the lowest hanging fruits have been picked and the solar adopter market has begun to saturate. However, Jumpstart opens the market for solar developers to access a broader array of customers, namely, the customers that are inaccessible due to high credit risk.
Jumpstart is afforded a generous risk appetite because of our algorithmic process, which filters for projects that have the highest return profiles and uses machine learning to select customers that are unlikely to default. As a result, Jumpstart can economically provide solar financing to more households than ever before. This is especially relevant in emerging markets, where there are many additional risk factors that disincentivize investment, such as political risk, permitting risk, and curtailment risk.
Jumpstart’s affiliate partners are only called to install solar projects when the entirety of the unit payments have been collected. Because Jumpstart pre-pays the entire project cost upfront, the developer will be able to reach more customers without many of the risks associated with financing high-risk customers. The developer may send any customer to Jumpstart to be evaluated for financing opportunities.
The developer also receives the implicit benefits of being the developer of a highly-trafficked page. For example, take a look at Project Kona.
There are slight differences in how Jumpstart involves itself:
Residential or Commercial-Scale Solar Developers: The developer provides a price in advance for developing solar+battery projects. Jumpstart raises money on its platform and pays the developer for a 100% upfront solar lease. This allows customers with low credit scores (or insufficient capital) to have access to solar. The customer signs a contract to pay Jumpstart monthly, designed to be similar in price to the solar leases that developers would normally charge.
Utility-Scale Solar Developers: The developer provides commercially viable energy infrastructure projects that are at financial close (meaning that the project has completed all requisite interconnection studies and permitting studies, and have confirmed offtakers). In exchanging for providing capital to reach commercial operation, Jumpstart takes an equity stake and retains ownership of these projects for a contracted period of time, until the project is sold to local entities.