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