SolarCity, pioneer of the lease, rolls out a home solar loan

SolarCity, the company that pioneered the concept of a no-money-down solar lease, is rolling out a new financing product: the home loan.

SolarCity says that “MyPower” combines the low upfront cost and utility savings of a power purchase agreement with the benefits of ownership; customers pay for the loan based on the energy their system produces, but retain ownership of the solar panels.  SolarCity says the financing option allows homeowners to retain ownership of the solar panels. The cost depends on the size of the system, but monthly payments could be as low as $35 to $40, along with lower utility bills.

“The lease and PPAs have been extremely popular,” said SolarCity spokesman Jonathan Bass in an interview. “But as we’ve talked to customers, a lot of people just want to own the system. They have a preference for ownership. We expect this product to be a significant part of our residential business.”

MyPower customers can prepay the balance of the loan or a portion of the loan to lower monthly payments at any time, with no fees or penalties. And SolarCity itself is the lender, through a subsidiary called SolarCity Finance Company. There is no lien on the home, and the minimum credit score to qualify is just 680.

SolarCity will offer MyPower to customers in Arizona, California, Colorado, Connecticut, Hawaii, Massachusetts, New York and New Jersey, with plans to expand the product beyond its existing service territory.

Founded in 2006, SolarCity is one of the nation’s leading installers of rooftop solar panels on homes and commercial businesses, including several Walmart stores nationwide. In June, SolarCity announced plans to buy Silevo and open a manufacturing plant in upstate New York.

Third-party financing of solar systems has become a huge part of the solar adoption story in several states. Greentech Media has done some stellar research on this issue.

Photo via SolarCity

 

 

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  • Ron Winton

    Nice try, our $0 down solar loan only requires a 650 credit score, it offers tax deductible interest and our pricing is much lower. And we offer ultra high performance, bifacial Hyper X 2 solar panels with up to a 21.5% panel efficiency that are see through, glass on glass and frameless for unbeatable aesthetics.

 
 
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