1. SunPower Residential Financing
Bonaire Le – CCBA Training | December 16th 2016

2. Why do USA homeowners buy solar?
Residential solar is competitive with residential utility rates (i.e., “grid parity”) in 20 states and expected to expand to 42 states by 2020, as costs come down and as utility prices rise.
In California, solar power replaces the high retail cost of energy in tiered pricing utility rate structures:
BUY LOWER-COST POWER FROM UTILITY
REPLACE HIGHER-COST POWER
WITH LESS EXPENSIVE SOLAR POWER
Cost of Solar
($/kWh)*
* After tax incentives

3. What does solar savings look like to a customer?
$200/month
(Utility Bill)
BEFORE SOLAR
$120/month
(Solar Rent)
$50/month
(Remaining Utility Bill)
AFTER SOLAR
CUSTOMER SAVINGS WITH SOLAR
$169 (Solar Rent) + $74 (Residual Utility Bill) = $243
versus
$ 30/month
(Illustrative Savings)
$200/month
$170/month

4. Getting solar to our homeowners in the USA
SunPower leverages several strong sales channels to serve customers 45
States Served
450+
U.S. Channel Partners
Direct
In Select Markets
>2,000
Sales Reps1
>1,000
Service Vehicles
Lease Market
Loan Market
1. Registered active users of SPWR quotation tool

5. Why solar and is it right for you?
Solar is a great solution to for many homeowners to save on their electricity bill while also contributing to a more eco-friendly economy, but it may not be for everyone! ?
Do you own your home?
How much electricity does your household use?
What is the cost of electricity where you live?
How much space is available on your roof?
What incentives are available to you?

6. Financing options: fitting a homeowner’s needs
The financial situation is different for each homeowner and we want to provide options that fit.
Private Ownership
Third-Party Owned
Cash
Loan
Lease
You already have $ to pay for solar upfront
You own it!
You qualify for the 30% Federal Income Tax Credit1
May increase the value of your home2
You borrow $ to pay for the solar upfront
You own it!
You qualify for the 30% Federal Income Tax Credit1
May increase the value of your home2
Flexible payment options available
No upfront cost (for qualified customers)
You don’t own it
Begin saving from the day your system is energized
Monthly payments are less than your average electricity bill
Guaranteed solar energy output
Option to own, renew or remove at the end of the lease term
1 Tax credits subject to change. SunPower does not warrant, guarantee or otherwise advise its partners or customers about specific tax outcomes. Consult your tax advisor regarding the solar tax credit and how it applies to your specific circumstances. Please visit the dsireusa.org website for detailed solar policy information.
2 Source: Hoen, B., Adomatis, S., Jackson, T., Graff-Zivin, J., Thayer, M., Klise, G., & Wiser, R. (2015). Selling Into the Sun: Price Premium Analysis of a Multi-State Dataset of Solar Homes. Based on analysis of home sales with & without solar energy systems in 8 states from 1999 to Actual impact on home values will vary.

7. Deciding between leasing and owning your solar system
How important is owning your system to you? 1
How important is it for you to pay zero down* for your system? 2
If you’re making payments, is it critical that you save money each month? 3
Do you know if you have particularly strong credit? 4
Can you take the Federal Income Tax Credit?1 5
1 Tax credits subject to change. SunPower does not warrant, guarantee or otherwise advise its partners or customers about specific tax outcomes. Consult your tax advisor regarding the solar tax credit and how it applies to your specific circumstances. Please visit the dsireusa.org website for detailed solar policy information.
* For qualified homeowners.

8. Third-party ownership exists in many industries

9. Purchased vs. Financed Systems in a nutshell
BENEFITS AND REQUIREMENTS
LEASE
LOAN
CASH
FINANCIAL SAVINGS
Immediate utility bill savings 
Zero upfront cost 
30% Solar Tax Credit
Lower property taxes
SIMPLICITY & PEACE OF MIND
Performance guarantee
Credit requirements
Two electric bills
Transfer requirements at time of home sale
INVESTMENT & SECURITY
Hedge against future energy cost increases
Increased resale value
Maybe

10. How do we continue to make solar accessible and affordable?
The solar industry is constantly changing and to win in this market, we need to continually reassess our position and offerings.
Policy and Regulatory Reform
Net metering policies
SREC programs
Solar tariffs
ITC Extension
Rate Structure Evolution
Demand charges
Fixed charges
Time-of-use rate structures (on/off peak rates, later peaking times)
Customer Preference
Ownership versus leasing
Financing terms (down payments vs escalators)
Product Innovation
Panel efficiency
Product differentiation
Solar solutions (e.g., smart thermostats, energy management, storage, etc.)
Business Strategy (channels)
Lease: retrofit vs new homes, direct vs indirect
Loan: availability and loan-terms
PPA?
Market Competition
SolarCity
SunRun
NRG
CleanPower Finance
Sungevitiy