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

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Presentation on theme: "CEFIA Residential Financing: Smart-E, Solar Lease, CT Solar Loan Training Presentation for Round III."— Presentation transcript:

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

2 Agenda ▪Introduction to Homeowner Financing Options –Smart-E Loan –CT Solar Loan –CT Solar Lease ▪Product Comparison

3 Introduction to Financing Products Solarize

4 Which option is right for your customers? Smart-E LoanCT Solar LoanCT Solar Lease What 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 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 years15 years 20 years

5 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 5

6 Smart-E Loans Introduction to Smart-E Loans

7 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

8 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 L EGEND : Light green – 1 Branch Medium green – 2 BranchesDark green – 3 Branches

9 Smart-E Loan Representative Cash Flow Term Length 12-year Not-to-Exceed Rate 6.99% Down Payment Required $0 Loan Amount (7 kW @ $3.40/W) $15,470 ITC Value $4,641 Est. Monthly Payment ($159) Est. Net Cost (1 st Month) ($62)

10 Smart-E 12 Year Loan: Annual Cash Flows (savings) (25 years) Value of ITC essentially covers net payments due over 12 year term

11 ▪Quick, easy, flexible (can finance EE, too, and up to 20% non-energy measures… like roof repair) ▪Local lender, high touch ▪Video online here: ▪CEFIA calculator tool to determine best term/rate for each customer Marketing the Smart-E Loan

12 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

13 CT Solar Loan Introduction to the CT Solar Loan

14 CT Solar Loan 14 ▪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

15 Overview of Solar Loan: 15 Loan TermsTerms and Conditions Interest Rate6.49% per year (assuming pre-payment using ITC proceeds within first 18 months) Term15 years Down paymentMinimum down payment of 5% of gross system costs FICO Score≥ 680 Re-amortizationYes, allowed once within first 18 months AssignabilityYes, so long as new homeowner meets credit criteria of CT Solar Loan

16 CT Solar Loan Representative Cash Flow Term Length 15-year Interest 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 (1 st Month)$124 Est. Net Cost (1 st Month)$19 Est. Monthly Payment (at time of re-amortization)$81 Est. Net Cost (at time of re-amortization)$29 **Assumes no dealer fee

17 CT Solar Loan: Annual Cash Flows (savings) Cash flow positive by year 2 due to lower monthly payments and re-amortization of loan using ITC

18 Marketing the CT Solar Loan Sungage Physical and On-line Assets Physical collateral Solar Wealth™ Calculator Earned media Social Media

19 CT Solar Lease Introduction to the CT Solar Lease

20 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 20

21 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 21

22 Escalating CT Solar Lease Representative Cash Flow Term Length 20-year Not-to-Exceed Rate N/A Down Payment Required $0 Est. Monthly Payment (1 st Month) $72 Est. Monthly Savings (1 st Month) $34 Month of First Positive Cash Flow Immediate Note: assumes 7 kW system installed at $3.50/W inclusive of $.10/W for extended warranty

23 CT Solar Lease: Annual Cash Flow (savings) (20 years) Immediately cash flow positive

24 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

25 Comparison of Financing Options (for a 7kW system installed at $3.40/W) Smart-E Loan (12yr)CT Solar LoanCT Solar Lease Not-to-Exceed Rate 6.99%6.49%N/A Down Payment Required $0$1,253$0 Loan Amount $15,470$14,280N/A Term (years) 121520 Est. 1 st Month Payment [after re-amortization] ($159) ($124) [$19] ($72) Est. 1 st Month Net Cost [after re-amortization] ($62) ($81) [29] $34 Assignable No Yes Re-amortization No YesN/A System performance guarantee No Yes Insurance and warranty bundle + lifetime O&M No Yes Note: for lease, assumes an extra $0.10/W for extended inverter warranty

26 Questions / Comments

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