Tag Archives: solar financing

SolarCity to Offer Own Loans to Homeowners

SolarCity, the nation’s largest provider of rooftop solar, said Wednesday that it is offering direct loans to homeowners in California and seven other states who want to own their solar energy systems.

Recent growth of the rooftop solar industry has been fueled foremost by lease and power-purchase agreements that allow customers to buy electricity at a discount from utility rates, typically over a 20-year period, while the solar company owns and maintains the equipment.

Those deals can offer upfront savings with little or no money down. But analysts are predicting a shift toward buying, as confidence grows in the technology and better financing emerges.

San Mateo-based SolarCity says its new, 30-year loans will replicate and improve upon the savings and assurances of a power-purchase agreement. Customers repay the loans according to their power production, billed in kilowatt-hours.

“Nothing like this exists. It combines the benefits of a PPA with ownership,” SolarCity CEO Lyndon Rive said. “Our motivation is always to make sure the (solar energy) system is performing, because if it doesn’t, the loan doesn’t get paid back.”

The loans only become more attractive than a lease if the customer incorporates their federal investment tax credit for solar.

Describing a $30,000 loan for a rooftop solar array, Rive said the borrower would initially repay the loan at 16 cents per kilowatt-hour. After the first year, a $9,000 solar tax credit can be used to buy down the loan to 11 cents or 12 cents per kilowatt-hour.

read more at: http://www.utsandiego.com/news/2014/oct/09/tp-solarcity-enters-loan-business-solarcity-to/

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Solar Installers Offer Deals, Gaining Converts

HOLMDEL, N.J. — Jay Nuzzi, a New Jersey state trooper, had put off installing solar panels on his home here for years, deterred by the $70,000 it could cost. Then on a trip to Home Depot, he stumbled across a booth for Roof Diagnostics, which offered him a solar system at a price he couldn’t refuse: free.

Contact the appraisers at www.scappraisals.com for you value questions regarding solar.

California: CA homeowners are increasingly choosing to avoid the upfront costs. In California, the country’s largest market, more than 70 percent of residential customers putting in solar this year have opted to sign a lease or power purchase agreement with someone else owning the systems, according to PV Solar Report.

The structure of the deals varies by company and state, but the overall approach is generally the same: Customers agree to pay a fixed monthly charge or rate for all the solar power produced, and the companies that finance the systems pay for the installation and take the value of any tax breaks or renewable energy credits for which the customer would ordinarily be eligible. Some companies concentrate on financing and use local contractors for sales and installation, while others do everything themselves.

Story continued: Mr. Nuzzi had to sign a 20-year contract to buy electricity generated by the roof panels, which he would not own. But the rates were well below what he was paying to the local utility. “It’s no cost to the homeowner — how do you turn it down?” Mr. Nuzzi said on a recent overcast morning as a crew attached 41 shiny black modules to his roof. “It was a no-brainer.”

Similar deals are being struck with tens of thousands of homeowners and businesses across the country. Installers, often working through big-box chains like Home Depot or Lowe’s, are taking advantage of hefty tax breaks, creative financing techniques and a glut of cheap, Chinese-made panels to make solar power accessible to the mass market for the first time. The number of residential and commercial installations more than doubled over the last two years to 213,957, according to Greentech Media, a research firm.


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