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 it 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 lown 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.
