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