Financing remains one of the biggest roadblocks to widespread adoption of solar, and with the industry laser-focused on this, homeowners now have many more options.
The latest option is through credit unions. Digital Federal Credit Union – the biggest in New England – signed an agreement with SunPower (Nasdaq: SPWR) that could provide $100 million in residential loans to install solar systems. The SunPower Loan is available in all 50 states and Washington, D.C.
Digital serves as the lead originator for a consortium of 36 credit unions formed to support SunPower’s residential loan program. After joining Digital, a homeowner is eligible for up to a $50,000 loan, which would be implemented by a local credit union.
Homeowners can get loans for little or no money down, affordable rates, terms up to 20-years, and a 25-year warranty
says Chuck Boynton, CFO of SunPower. There’s also a 30% federal tax credit, as well as additional incentives offered by many states and municipalities.
SunPower, the top installer in the US, makes the most efficient solar systems in the industry at 21.5%. It also offers leasing options in some states.
Other financing methods for homes and businesses include
PACE – which allow loans to be paid back slowly through a small charge on real estate taxes – and "on bill" repayment programs that allow loans to be repaid through energy savings on utility bills. California and New York are examples of states with these programs.
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