CEFIA Residential Financing:Smart-E, Solar Lease, CT Solar Loan Training Presentation for Round III

Agenda

▪ Introduction to Homeowner Financing Options– Smart-E Loan– CT Solar Loan– CT Solar Lease

▪ Product Comparison

Introductionto Financing Products

Solarize

Which option is right for your customers?  Smart-E Loan CT Solar Loan CT Solar LeaseWhat Makes It Special?

Quick and easy financing from your local bank

Low monthly payment makes purchasing solar affordable

Hassle- and worry-free, no money down

Own Your Solar?

Yes Yes No (option to purchase)

Down Payment?

Not required 

Minimum of 5% of installed cost 

Not required if installed cost ≤ $4.50/W

Terms 5 - 12 years 15 years 20 years

Overview of the Financing Information▪ Pricing Considerations: all data presented herein

reflects”– Tier 5 (250 kW+) – Pricing of $3.40/W, which is an average of the $/W

across the six Solarize Round III communities and exclusive of any adders Or a total installed cost of $23,800 (before

significant federal and state incentives, and exclusive of adders) for a 7 kW system

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Smart-E Loans

Introductionto Smart-E Loans

What are Smart-E Loans?

▪ Smart-E is a residential loan product for CT homeowners with FICO scores ≥ 680* and DTI ≤ 45% to access long-term, low-interest financing for energy improvements through participating credit unions and community banks with no money down

* Some participating credit unions and banks will lend to homeowners w/credit scores ≥ 640

Smart-E Lenders

Note: Approx. availability date for Liberty Bank and Union Savings Bank is end of September 2013

• CorePlus FCU

• Eastern Savings Bank

• Liberty Bank

• Naugatuck Savings Bank

• Nutmeg FCU

• Patriot National Bank

• Quinnipiac Bank & Trust

• Thomaston Savings Bank

• Union Savings Bank

LEGEND:Light green – 1 Branch        Medium green – 2 Branches Dark green – 3 Branches

Smart-E Loan Representative Cash Flow

Term Length 12-yearNot-to-Exceed Rate 6.99%Down Payment Required $0Loan Amount (7 kW @ $3.40/W) $15,470ITC Value $4,641Est. Monthly Payment ($159)Est. Net Cost (1st Month) ($62)

Smart-E 12 Year Loan: Annual Cash Flows

$1,000

$0

$1,000

$2,000

$3,000

$4,000

$5,000

(savings)

(25 years)

Value of ITC essentially covers net payments due over 12 year term

▪ Quick, easy, flexible (can finance EE, too, and up to 20% non-energy measures… like roof repair)

▪ Local lender, high touch▪ Video online here: www.energizect.com/smarte▪ CEFIA calculator tool to determine best term/rate

for each customer

Marketing the Smart-E Loan

Smart-E Interest Rate Promotion

▪ For Smart-E Loans, CEFIA is offering a promotional six-month, 0% interest deal for all customers who finance systems using this product

▪ For this 7 kW system priced at $3.40/W, this deal is equivalent to a discount of about $535 that you can offer your customers

CT Solar Loan

Introductionto the CT Solar Loan

CT Solar Loan

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▪ The CT Solar Loan is a residential loan product specifically designed for solar, serving homeowners with FICO scores ≥ 680 and DTI ≤ 45%* with the lowest monthly payments on the road to solar ownership and the greatest long-term return on investment

*FICOs ≥ 720 no DTI limit

Overview of Solar Loan:

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Loan Terms Terms and ConditionsInterest Rate 6.49% per year (assuming pre-payment using ITC

proceeds within first 18 months)

Term 15 years

Down payment Minimum down payment of 5% of gross system costs

FICO Score ≥ 680

Re-amortization Yes, allowed once within first 18 months

Assignability Yes, so long as new homeowner meets credit criteria of CT Solar Loan

CT Solar Loan Representative Cash Flow

Term Length 15-yearInterest Rate (assuming pre-payment using ITC proceeds) 6.49%

Down Payment Required $1,190

Loan Amount (7 kW @ $3.40/W) $14,280

ITC Value $4,641

Est. Monthly Payment (1st Month) $124

Est. Net Cost (1st Month) $19

Est. Monthly Payment (at time of re-amortization) $81

Est. Net Cost (at time of re-amortization) $29

**Assumes no dealer fee

CT Solar Loan: Annual Cash Flows

$2,000$1,500$1,000

$500$0

$500$1,000$1,500$2,000$2,500

(25 years)

(savings)

Cash flow positive by year 2 due to lower monthly payments and re-amortization of loan using ITC

Marketing the CT Solar LoanSungage Physical and On-line Assets

Physical collateral Sungage.net

Solar Wealth™ CalculatorSolar-Wealth.comEarned media

Social Media

CT Solar Lease

Introductionto the CT Solar Lease

Overview of the CT Solar Lease (Residential PV)

▪ Competitive solar lease program structure:– 20-year lease for homeowners with credit

scores ≥ 640 and DTI ≤ 45%– Escalating payments (2.99% per year) or fixed

lease available for higher monthly price– No money down*– Lease payments can be "bought down" or "pre-paid"

* If total system cost ≤ $4.50/W

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Overview of the CT Solar Lease

▪ Additional benefit to homeowners:– Bundled insurance and warranty

management from Assurant One-call resolution for all issues Property and casualty coverage Multi-Year Warranty Management Program

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Escalating CT Solar Lease Representative Cash Flow

Term Length 20-yearNot-to-Exceed Rate N/ADown Payment Required $0Est. Monthly Payment (1st Month) $72Est. Monthly Savings (1st Month) $34Month of First Positive Cash Flow Immediate

Note: assumes 7 kW system installed at $3.50/W inclusive of $.10/W for extended warranty

CT Solar Lease: Annual Cash Flow

$0

$100

$200

$300

$400

$500

$600

(savings)

(20 years)

Immediately cash flow positive

Marketing the CT Solar Lease (Residential PV)▪ The “Pitch” for CT Solar Lease

– Go Solar for no money down*– Save on your electric bill from day one

And lock in predictable bills for years to come

– Peace of mind through the life of your lease Insurance and warranty coverage bundled in, just one # to call Warranty coverage for full 20 years even if homeowner buys system Protection even if manufacturer or installer (God forbid!) goes out of business

– The affordable way to go solar Pay a low fixed or escalated monthly payment – you choose

With the CT Solar Lease it’s never been easier to go solar!

* No down payment require if total system cost ≤ $4.50/W

Comparison of Financing Options (for a 7kW system installed at $3.40/W) Smart-E Loan (12yr) CT Solar Loan CT Solar Lease

Not-to-Exceed Rate 6.99% 6.49% N/A

Down Payment Required $0 $1,253 $0

Loan Amount $15,470 $14,280 N/A

Term (years) 12 15 20

Est. 1st Month Payment[after re-amortization]

($159) ($124)[$19] ($72)

Est. 1st Month Net Cost[after re-amortization]

($62) ($81)[29] $34

Assignable No Yes Yes

Re-amortization No Yes N/A

System performance guarantee

No Yes Yes

Insurance and warranty bundle + lifetime O&M

No No Yes

Note: for lease, assumes an extra $0.10/W for extended inverter warranty

Questions / Comments