RESIDENTIAL SOLAR FINANCING

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RESIDENTIAL FINANCING

Homeowners in New York now have many financial options when 'Going Solar'. Your selection of a financing option may affect who receives the incentives. FULL REPORT

Cash

Homeowners and businesses can purchase a solar PV system with cash. In this option, the homeowner or business would receive 100% of all available federal, state, utility, or other incentives.

Lease

A solar lease is a financing structure whereby a third party developer or financier develops, purchases, owns, and operates a solar PV system for an end user who pays a set monthly rate for the use of the solar system. Typically the monthly rate for a solar lease is the same every month regardless of how much electricity is produced by the solar PV system, unless there is a lease escalator whereby the end user’s lease payments increase by a marginal percentage each year. The end user does not have to provide any upfront capital for the solar PV system. However, the third party developer or financier takes a portion of
the available federal tax incentives because they require a higher return on investment. The remaining majority of incentives are then built into the monthly lease price. Solar lease terms typically last between 10 and 25 years. Many solar installers provide their customers with a solar lease option.

Power Purchase Agreements (PPAs)

A Power Purchase Agreement, or PPA, is a financing structure whereby a third party developer or financier develops, purchases, owns, and operates a solar PV system for an end user who pays a set price per kilowatt hour (kwh) for the electricity produced by the PV system. The end user typically does not have to provide any upfront capital for the solar PV system. However, the third party developer or financier takes a portion of the available federal tax incentives because they require a higher return on investment. The remaining majority of incentives are then built into the PPA price. PPA terms typically last between 10 and 25 years. Many solar installers provide their customers with a PPA option.

Loans

Homeowners and businesses can purchase a solar PV system with a loan. In this option, the homeowner or business would receive 100% of all available federal, state, utility, or other incentives. Tax incentives will depend upon the tax liability of the end user.

Sungage Financial Solar Loan

The Sungage Financial Solar Loan provides financing to homeowners for solar PV projects through qualified Sungage solar installers.

Interest rates start at 4.00%
Maximum loan amount is $50,000 with 5, 10, 15, and 20 year loan terms
Target credit score is 680 and target Debt to Income is 50% (however, each applicant is reviewed on a case by case basis and thus may be approved without meeting these targets).
No pre-payment penalties.
$0 down and 0%interest for first 12 months (this essentially functions as a bridge loan for the federal and state tax rebates).
No home equity is required as collateral for the loan is the future energy generation from the solar PV array.
Borrower can transfer loan to new homeowner upon sale as long as new homeowner has been approved through Sungage.

To learn more about the Sungage Financial Solar Loan please visit their website here or call (844) 4-SUNGAGE.

SunPower/Enerbank SolarNow Financing Program

SunPower, in partnership with Enerbank, are providing combo-loan financing for Solar PV projects
utilizing SunPower PV panels through qualified SunPower/Enerbank solar installers.

100% unsecured financing up to $55,000 with 5, 7, 10 or 12 year terms
Utilizes Same-as-Cash (SAC) loan to cover federal and state tax rebates at 0% interest if repaid
by end of SAC 12 or 18 month term.
Reduced Interest Loan at 5, 7, 10, and 12 year terms if not utilizing SAC option.
No application fees, closing costs, or pre-payment penalties.

To learn more about the SunPower/Enerbank SolarNow Financing Program please visit their website here
or call 1-800-SUNPOWER (1-800-786-7693).

Green Jobs Green New York (GJGNY) On-Bill Recovery Loan

The GJGNY On-Bill Recovery Loan is an instrument that allows customers to finance renewable energy improvements through a charge on their utility bill.

Interest rate is 3.49%; interest rates are subject to change.
Loan amounts range from $1,500 - $25,000 with terms of 5, 10, or 15 years.
Borrower must have a credit score of at least 540 and debt-to-income of 70%.
No bankruptcy, foreclosure, or repossession history within past 2 years.
Loan payment built into customer’s utility bill.
Balance may be transferred to new owner when home is sold.
The home or small business/non-profit must be served by a participating utility, including:
Central Hudson Gas & Electric, Con Edison, PSEG-Long Island, NYSEG, National Grid (Upstate NY customers only), Orange & Rockland, and Rochester Gas & Electric.
Average energy savings must be greater than monthly energy payment.

Green Jobs Green New York (GJGNY) Residential Smart Energy Loan

The GJGNY Residential Smart Energy Loan provides financing for renewable energy improvements,
including solar PV and solar thermal, on existing 1-4 unit residential buildings by a participating NY-Sun Incentive Program or PON 2149 contractor.

Interest rate is 3.49% fixed or 3.99% if paying by check.
Loan amounts range from $1,500 - $25,000 ($13,000 max if simple payback is greater than 15
years – calculated by dividing the loan amount by the first year estimated energy cost savings).
Borrower must have a credit score of at least 540 and Debt to Income of 70%.
No bankruptcy, foreclosure, or repossession history within past 2 years.
Repayments made directly to NYSERDA’s loan servicer via monthly statement billing or
automatic bank withdrawal.
If home is sold or transferred, borrower is responsible for the outstanding balance of the loan and
cannot be assigned.
Borrower must own the home, or lease or manage the residential building and be an authorized representative of the owner.

To learn more about the GJGNY Residential Smart Energy Loan please visit their website here.

Admirals Bank Solar StepDown Loan

The Admirals Bank Solar Loan is a non-equity based loan for customers seeking to finance renewable energy projects, including solar, energy efficiency, small wind, and geothermal. Qualifying renewable energy projects may be combined with general home improvement projects such as roofing or window improvements. In this option, the homeowner would receive 100% of all available federal, state, utility, or other incentives.

Fixed interest rates of 4.95%-9.95% depending on credit score.
Maximum loan amount of $25,000 with terms up to 20 years.
Must have a credit score of 650 or above and have a debt-to-income ratio of 45% or lower to qualify and no bankruptcies within past 2 years.
Ability to lower monthly loan payments by applying money from federal, state, and other incentives to loan balance at any time.
No pre-payment penalties.
Can be combined with SolarPlus unsecured, same-as-cash, loan for an additional $15,000 if borrower has credit score of 700 or greater.

To learn more about the Admirals Bank Solar StepDown Loan please visit their website here.