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
Solarize
Introduction
to Financing Products
Which option is right for your customers?
Smart-E Loan
What Makes It Quick and easy
financing from
Special?
your local bank
CT Solar Loan
CT Solar Lease
Low monthly
payment makes
purchasing solar
affordable
Yes
Hassle- and
worry-free, no
money down
Own Your
Solar?
Down
Payment?
Yes
Not required
Minimum of 5% Not required if
of installed cost installed cost ≤
$4.50/W
Terms
5 - 12 years
15 years
No (option to
purchase)
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
5
Smart-E Loans
Introduction
to 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
•
CorePlus FCU
•
Eastern Savings Bank
•
Liberty Bank
•
Naugatuck Savings Bank
•
Nutmeg FCU
•
Patriot National Bank
•
Quinnipiac Bank & Trust
•
Thomaston Savings
Bank
•
Union Savings Bank
Note: Approx. availability date for
Liberty Bank and Union Savings Bank is
end of September 2013
Light green – 1 Branch
LEGEND:
Medium green – 2 Branches
Dark green – 3 Branches
Smart-E Loan Representative Cash Flow
Term Length
Not-to-Exceed Rate
Down Payment Required
Loan Amount (7 kW @ $3.40/W)
ITC Value
Est. Monthly Payment
Est. Net Cost (1st Month)
12-year
6.99%
$0
$15,470
$4,641
($159)
($62)
Smart-E 12 Year Loan: Annual Cash Flows
$5,000
$4,000
(savings)
$3,000
$2,000
Value of ITC essentially covers net
payments due over 12 year term
$1,000
$0
(25 years)
$1,000
Marketing the Smart-E Loan
▪ 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
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
Introduction
to the CT Solar Loan
CT Solar Loan
▪ 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
14
Overview of Solar Loan:
Loan Terms
Terms and Conditions
Interest 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
15
CT Solar Loan Representative Cash Flow
Term Length
15-year
Interest Rate (assuming pre-payment using ITC proceeds)
6.49%
Down Payment Required
$1,190
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
(savings)
$2,500
$2,000
$1,500
$1,000
$500
$0
$500
$1,000
$1,500
$2,000
Cash flow positive by year 2 due to lower monthly
payments and re-amortization of loan using ITC
(25 years)
Marketing the CT Solar Loan
Sungage Physical and On-line Assets
Physical collateral
Social Media
Sungage.net
Solar-Wealth.com
Earned media
Solar Wealth™ Calculator
CT Solar Lease
Introduction
to 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
20
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
Escalating CT Solar Lease Representative Cash Flow
Term Length
20-year
Not-to-Exceed Rate
N/A
Down Payment Required
$0
Est. Monthly Payment (1st Month)
$72
Est. Monthly Savings (1st 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
CT Solar Lease: Annual Cash Flow
$600
Immediately cash flow positive
$500
(savings)
$400
$300
$200
$100
$0
(20 years)
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
6.99%
6.49%
N/A
$0
$1,253
$0
Loan Amount
$15,470
$14,280
N/A
Term (years)
12
15
20
($159)
($124)
[$19]
($72)
($62)
($81)
[29]
$34
Assignable
No
 Yes
 Yes
Re-amortization
No
 Yes
N/A
No
 Yes
 Yes
No
No
 Yes
Not-to-Exceed Rate
Down Payment Required
Est. 1st Month Payment
[after re-amortization]
Est. 1st Month Net Cost
[after re-amortization]
System performance
guarantee
Insurance and warranty
bundle + lifetime O&M
Note: for lease, assumes an extra $0.10/W for extended inverter warranty
Questions / Comments