Goldman Sachs Securitization of GoodLeap Assets Achieves S&P Global Rating in a First for the Residential Solar Industry

S&P rating will drive aggressive growth in residential solar by expanding access to capital from major financial services companies

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GoodLeap

Sep 08, 2021, 15:25 ET

SAN FRANCISCO, Sept. 8, 2021 /PRNewswire/ -- GoodLeap today announced the closing of GoodLeap Sustainable Home Solutions Trust 2021-4, an Asset-Back Securitization ("ABS") sponsored by Goldman Sachs & Co. LLC. The securitization is backed by approximately $369 million of residential solar loans originated on the GoodLeap platform. The transaction, rated by S&P Global Ratings, is the first ever residential solar transaction to be rated by one of the three major rating agencies. All tranches of the transaction were multiple times oversubscribed.

This inaugural S&P rating comes as ESG investing is seeing record inflows, with money managers identifying climate change as the most important, specific ESG issue. In the U.S. alone, an estimated $10 trillion in capital will need to be invested in sustainably focused products like residential solar over the next decade to achieve net zero emissions by mid-century. S&P, along with the other two major rating agencies, will play a crucial role in unlocking much of this capital as many large financial institutions like insurance companies and asset managers have corporate mandates that require a rating from a major rating agency in order to participate in an ABS transaction. This institutionalization of ESG assets will, in turn, help lower borrowing costs and ultimately drive growth in sustainable home improvement products by providing consumers with access to more affordable payments options.

"We are proud to have worked with GoodLeap to achieve this rating milestone and are excited to see residential solar become an asset class more accessible to institutional investors. Our longstanding relationship with GoodLeap showcases the impact we can have, the result being significantly more capital available at a lower cost for homeowners," said Katrina Niehaus, head of corporate structured finance at Goldman Sachs

Residential solar and the broader sustainable home solutions market is estimated at $430 billion annually, with solar installations forecasted to quadruple by 2030, according to the research firm Wood Mackenzie. They further estimate that loans will make up 62% of the residential solar market this year and remain the dominant way for a homeowner to pay for solar. Currently only 4% of the 140 million homes in the U.S. have rooftop solar. With 42% of energy-related emissions stemming from decisions made in the home, this crucial step with S&P will help to achieve the President's target to reduce U.S. greenhouse gas emissions by at least 50% by 2030.

"This incredible milestone for residential solar is a testament to the hard work and dedication of the GoodLeap team who work tirelessly to ensure that the quality and performance of these assets meet the requirements of major rating agencies such as S&P," said Tanguy Serra, GoodLeap's President and Chief Investment Officer. "Having an S&P rating for this and future securities will ensure there is ample capital available for our industry's growth while providing consumers with affordable payment options for their carbon-reducing products."

This securitization, sponsored by Goldman Sachs & Co. LLC, consists of a total of $304.5 million of notes rated by S&P Global Ratings and Kroll Bond Rating Agency. The notes are backed by $369 million of principal balance of loans with a weighted average note rate of 2.09%. At the time of origination, the weighted average FICO® score of the loans was 741.

About GoodLeap
GoodLeap is the nation's number one point-of-sale platform for sustainable home solutions, delivering a digital-first experience that is simple, fast, and frictionless. GoodLeap's proprietary technology platform is actively used by more than 15,000 sales professionals, creating an efficient option for financial institutions to deploy their capital in high-performing ESG assets. GoodLeap has deployed over $8.5 billion in capital for sustainable home improvement products since 2018, empowering countless consumers to live a more sustainable lifestyle. GoodLeap is a proud partner of GivePower, a 501(c)(3) corporation, whose mission is to build and deploy solar-powered clean water and energy systems to communities in need around the world. To learn more about GoodLeap, visit, follow and connect with us at goodleap.com

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