By Ray Birch
BOULDER, Colo.—A newly chartered credit union here believes there is an opportunity to be had in consumers’ growing interest in clean energy solutions, like solar power.
Clean Energy CU plans to open for business in 2018 to fill a need it says is largely ignored by most lenders. The credit union will focus on lending for solar systems, electric vehicles and improvements to homes that make them more energy efficient.
As CUToday.info reported, NCUA in September granted a federal charter to Clean Energy.
“Some credit unions are latching onto this market,” said CEO Terri Mickelsen. “But we need more financial institutions to serve people’s needs here. Not a lot is really known about the solar energy lending market, but it is certainly growing. It could be a big opportunity.”
Clean Energy is starting small, with $1 million in assets when it opens. The credit union, which is virtual, can do business in 43 states. But plans are to start with a limited market, focusing on Colorado and only the members of the American Solar Energy Society (ASES). ASES has members across the country and is based in Boulder.
Walk Before Running
Mickelsen said members will be served with online and mobile banking, chat—and eventually video chat—email and text messaging.
“What we want to do first is make sure all of our online systems are running correctly. We still have to put in place our online accounting and LOS systems,” said Mickelsen in October. “We also have to get all of our forms in place, forms that will apply to compliance rules in 43 states.”
Early on Mickelsen said she expects Clean Energy will serve 1,000 members. She said expansion will depend on member interest, interest from clean energy merchant dealers with which credit union will partner, and how effectively the credit union with a staff of three is able to serve members’ needs.
“That is the key,” said Mickelsen, who will handle most of the duties initially along with two volunteers. Clean Energy Credit Union is working with two consultants—one for IT and another for marketing consultant.
“I believe in slow, controlled growth. It is very important that we don’t grow too quickly, and not be able to provide members with the very best service. If they come to us and their experience is not great, they won’t tell their friends about us, nor will they come back.”
Initially the credit union will do very little marketing, relying mostly on word of mouth, the CEO said.
Lots Of Unknowns
Mickelsen said the next hires, when growth deems it necessary, will likely be a lending expert and possibly someone to head accounting.
“I don’t know how big we will get and how fast, as there are a lot of unknowns about this market—the political climate, the tax credits,” she said. “This is such a huge market. If we do this right I think we can be a $10-million credit union in five years, if not larger. We have a lot of potential if we do this right.”
Mickelsen said the idea of being involved in a startup credit union attracted her to the position at Clean Energy. Previously, she was COO at US Eagle FCU in New Mexico.
“I have been working in credit unions for 30 years, having started at what was then New Mexico Educators (now Nusenda) as a teller,” said Mickelsen. “I am not sure how many startup credit unions you see anymore. So when I saw this opportunity I was very interested. I believe in credit unions and how we can help people.”
In addition to the clean energy loans, CECU will initially offer savings accounts and CDs. Later offerings are likely to include checking accounts, debit cards, credit cards, and a wider variety of clean energy-focused loan products, Mickelsen said.
Just as products will expand, Mickelsen said it is possible that the credit union could open up its field of membership to other SEGs, but that would be down the road.
“I can see us adding on other types of clean energy coops,” she said.
Member Education
One other step the credit union will take when it has the staff and the time is to provide consumers with education around solar systems. Mickelsen explained that most consumers don’t understand how to shop for a solar system, find the one that is right for their home and determine the savings, and locate the right supplier.
Mickelsen thinks the credit union’s virtual business model and conservative staffing will allow the credit union to offer competitive lending rates from the start.
“But as we grow I think we can get very competitive,” she said. “Our goal is to get clean energy products into the hands of our members. Get solar panels on roofs and help the environment. One thing that will be very important for us to do is show people just how many members we are serving and how many solar panels we are putting on roofs. I think that it will be important to our growth to show that to people, and I think we can do that on our website.”