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CEFIA Residential Financing: Smart-E Loan, CT Solar Loan, CT Solar Lease Training Presentation for Solarize West Hartford Ambassadors.

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Presentation on theme: "CEFIA Residential Financing: Smart-E Loan, CT Solar Loan, CT Solar Lease Training Presentation for Solarize West Hartford Ambassadors."— Presentation transcript:

1 CEFIA Residential Financing: Smart-E Loan, CT Solar Loan, CT Solar Lease Training Presentation for Solarize West Hartford Ambassadors

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 Paying for Solar – Several Great Options! 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/Watt Terms 5 - 12 years15 years 20 years

5 Overview of the Financing Information ▪Pricing Considerations: all data presented in this presentation are for Tier 5 (250 kW+): $3.48/W, or a total installed cost of $24,360 (before significant federal and state incentives, and exclusive of adders) for a 7 kW system ▪Purchase pricing submitted by C-TEC Solar, the contractor for Solarize West Hartford ▪C-TEC Solar offers turn-key solar energy solutions in the residential sector 1-888-52-Solar www.solarizect.com/westhartford 5

6 Smart-E Loans Introduction to Smart-E Loans

7 What are Smart-E Loans? ▪Residential loan product for CT homeowners ▪Low-interest financing with flexible terms ▪$25k maximum ▪FICO scores ≥ 680*, Debt to Income ratio ≤ 45% ▪Easy application through local lenders ▪40+ energy improvements, including solar ▪No money down, no prepayment penalty ▪Eligible Smart-E Lenders are Nutmeg Federal Credit Union, Thomaston Savings Bank, Liberty Savings Bank, and Union Savings Bank (Union available mid-October) * Some participating credit unions and banks will lend to homeowners w/credit scores ≥ 640

8 Smart-E Loan Representative Cash Flow Term Length 12-year Not-to-Exceed Rate 6.99% Down Payment Required $0 Loan Amount (7 kW @ $3.48/W) $15,834 Federal Investment Tax Credit (ITC) Value $4,750 Est. Monthly Payment ($163) Est. Net Cost (1 st Month) ($70)

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

10 ▪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/smartewww.energizect.com/smarte ▪CEFIA calculator tool to determine best term/rate for each customer Marketing the Smart-E Loan

11 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 –Offer good until December 31, 2013 ▪For this 7 kW system priced at $3.48/W, this deal is equivalent to a discount of about $505

12 CT Solar Loan Introduction to the CT Solar Loan

13 CT Solar Loan 13 ▪The CT Solar Loan is a residential loan product specifically designed for solar, serving homeowners with FICO scores ≥ 680 and Debt to Income (DTI) Ratio ≤ 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

14 Overview of Solar Loan 14 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 Note: Depending on loan-to-value ratio, borrower may be required to make pre-payment on loan within first 18 months using federal tax credit proceeds to maintain 6.49% interest rate

15 CT Solar Loan Representative Cash Flow Term Length 15-year Interest Rate (assuming pre-payment using ITC proceeds)6.49% Down Payment Required$1,218 Loan Amount (7 kW @ $3.48/W)$14,616 Federal Investment Tax Credit (ITC) Value$4,750 Est. Monthly Payment (1 st Month)($127) Est. Net Cost (1 st Month)($34) Est. Monthly Payment (at time of re-amortization)($83) Est. Net Cost (at time of re-amortization)$15 Note #1: assumes no dealer fee

16 CT Solar Loan: Annual Cash Flows (savings) Cash flow positive by year 3 due to lower monthly payments and re-amortization of loan using ITC

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

18 Solar Wealth Calculator – free, educational, & social 18 ▪ The Solar Wealth calculator is a free educational tool, available to all residents of Solarize communities, that helps homeowners answer the question: Does solar make good financial sense for me? ▪ The Solar Wealth calculator is personalized for an individual home ▪ Links that can be shared (email, Facebook, etc) to help make solar social in your communities ▪ Encourage your residents to ask the selected installer for their free Solar Wealth assessment!

19 CT Solar Lease Introduction to the CT Solar Lease

20 Overview of 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) ($78) Est. Monthly Savings (1 st Month) $15 Month of First Positive Cash Flow Immediate Note: assumes 7 kW system installed at $3.87/W inclusive of $0.39/W for extended warranty

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

24 Marketing the CT Solar Lease ▪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 –The affordable way to go solar With the CT Solar Lease it’s never been easier to go solar! * No down payment required if total system cost ≤ $4.50/W

25 CT Solar Lease Promotion Coming any moment… ▪For CT Solar Lease, CEFIA is offering 1 st 3 months lease payments free for all customers who finance systems using this product –Offer good through December 31, 2013 ▪For a 7 kW system priced at $3.40/W (plus $0.10/W adder), this deal is equivalent to a discount of about $216 to the homeowner

26 Wrap Up for Financing Products Solarize

27 Comparison of Financing Options (for a 7kW system installed at $3.48/W) Smart-E Loan (12yr)CT Solar LoanCT Solar Lease Not-to-Exceed Rate 6.99%6.49%N/A Down Payment Required $0$1,218$0 Loan Amount $15,834$14,616N/A Term (years) 121520 Est. 1 st Month Payment [after re-amortization] ($163) ($127) [$83] ($78) Est. 1 st Month Net Cost [after re-amortization] ($70) ($34) [$15] $15 Present Value of Est. Savings $9,795$10,536$4,385 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 $0.39/W for extended inverter warranty

28 Questions / Comments


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