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Navigating the Maze ofResidential Solar Financing

Empowering the Solar Industry

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Solar financing landscape diversifying

Third party ownership (PPA / Lease) penetration is decreasing with PACE & Loans options increasing, giving contractors significantly more choice

30%40%50%60%70%80%90%100%

2014,Q1

2014,Q2

2014,Q3

2014,Q4

2015,Q1

2015,Q2

2015,Q3

Percentage6of6Third6Party6Ownership6Financing6 in6Major6Market6States6

CA NY CO

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Solar financing has changed significantly the last few yearsA few years ago Now

YES!

No OR

No Sale

PPA / Lease(if you have access and homeowner qualifies)

vs.

Limited choice and lost opportunities

Sales rep

Many financing options

Sales rep

Does the customer have enough cash?

PPA / Lease

Loans

Cash

PACE

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Each financing option meets different customer needsType

Loan Borrowing funds to purchase

Description Pros Cons

PACE(Property Assessed

Clean Energy)

PPA / Lease(Power Purchase

Agreement)

Cash

Payment through property taxes

• Accessible to installers• Low/no upfront costs• Customer owns system• Good long-term savings• Easy to understand

Third-party owned where homeowner has $/kWh or

monthly payment

No explanation needed!

• Accessible to installers• Low/no upfront costs• Customer owns system• Good long-term savings• Can qualify lower credit

• Credit requirements• Customer maintains system• Additional customer debt

• Limited geographic availability• Customer maintains system• Can be a complex sale

• Low/no upfront costs• Maintained by 3rd party

• Credit requirements• Potentially lower savings• Customer doesn’t own system• Not very accessible to installers

• Highest long-term savings• Customer owns system• No credit requirements

• High upfront costs• Customer maintains system

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Solar financing will increase in complexity over time

“Hybrid” products New payment plans Solar + storage / efficiency

PACEPPA +

Loan

Escalating Loan

+

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Growth of financing options leads to challenges

1. Getting authorized to sell – how do you get introduced to and approved by the right financing providers?

2. Navigating multiple systems – how do you streamline the quoting workflow across products to have a good sales rep and customer experience?

Sales rep

Loan A

PPA

Loan B Cash

PACE

Lease

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Qualify sites with usage & utility data

Design systems quickly and accurately

Generate proposals & e-sign contracts

Manage post-sale operations

Manage lead gen and sales pipelineCRM

Qualification

Design

Pricing &Proposal

Operations

End-to-end workflow

Solar software can provide the solutionSighten offers an end-to-end platform to access financing products of all types

Access to financing

Loan

PACE

PPA / Lease

Cash

+

Sales rep