US residential solar lender Dividend Finance is to be acquired by Ohio-based banking company Fifth Third.
Dividend, which offers financing packages for rooftop solar, energy storage and other home improvement schemes, professes to be one of the US’s leading solar lenders nationally and has developed a point-of-sale platform to improve access to financing for customers and contractors.
Fifth Third, meanwhile, is pursuing a goal of facilitating US$8 billion of sustainable financing by 2025, which includes lending and financing for a host of renewables projects and commercial clients, however the company has said it is now “actively assessing” a new target as a result of its acquisition of Dividend.
The deal is subject to closing conditions and regulatory approvals, and is expected to close in Q2 2022.
“The addition of Dividend Finance to our renewable energy portfolio enhances the scale of Fifth Third’s growing digital service capabilities and supports the Bank’s commitment to environmental leadership in financial services,” Greg Carmichael, chairman and CEO at Fifth Third, said.
US residential solar, which experienced significant growth rates last year, is widely tipped to perform strongly again in 2022 with growth rates upwards of 30% being forecast by some industry stakeholders.
Its growth has prompted renewed interest in the financing of residential solar, with Sunlight Financial going public last year via a deal with special purpose acquisition company (SPAC) Spartan.