No Money Down Purchase
We have two No Money Down, 100 percent financed solutions. One is hybrid loans from Sungage Financial. The other is the PACE financing system. These loan programs are FHA home improvement loans, so you can deduct the interest expense from your income when you do your taxes.
Hybrid Loan from Sungage Financial
This loan program is a is a hybrid loan made up of two parts.
First there is an 12 month no interest no payments loan to finance the 30% Federal Tax credit. It will allow you enough time to file your taxes, get the refund due for the solar tax credit, and pay off this portion of the financing.
Second there is a fifteen year (180 equal monthly payments) loan for the remaining 70% of the cost. There is no prepayment penalty and the interest paid is tax deductible. You get an immediate reduction of your cost for electricity and after fifteen years you own the system free and clear.
This is no money down financing. There is no costly outlay upfront. You simply agree to purchase the Solar Photo Voltaic system which will generate electricity at a price lower than what you’re paying your current utility company, and agree to the terms of the loan. The terms of the loan will be fully disclosed to you to review before you make any commitments
A nominal loan processing fee will be added to the loan amount.
Save Money Immediately
The monthly payment on this loan is less than the savings on your electric bill so you save money right away. Your savings begin right away and increase each year as your utility company raises its prices, historically 5.5 percent per year. Unlike payments a on a lease or power purchase agreement, which typically increase 2.9 percent per year, your payment amount remains the same throughout the ten year period.
Save More Money Over Time
After the fifteeen year period when the loan is paid off, your system will be producing electricity for at least the next 10 years at no cost to you. The systems we install have equipment that is warrantied for 25 years, including production guarantees. These systems will continue to create electricity longer than 25 years.
No Liens on Your Home!
With our no money down financing, there are no liens on your home. When you get a lease or Power Purchase Agreement for a Solar Photo Voltaic system, the company that gives you the lease puts a lien on your property. If you want to sell your home in the future you will have to negotiate with the owner of the system to transfer the ownership of the property. They can prevent you from selling your house if you do not come to mutually agreeable terms.
That does not happen with our no money down purchase. You simply use the proceeds from the sale of your home to pay off any outstanding balance with no prepayment penalty, all under your control
The new owners can take over the existing Net Meter Agreement with your utility company. You factor the cost into your property’s sale price. “Electricity included” can be a powerful selling point!
In most cases, customers with good credit can start generating their own electricity with nothing down. Please contact us for a free consultation and review of your specific needs. We look forward to talking to you!
Comparison of a loan versus a typical lease
The following table is a comparison of the differences and advantages of our No Money Down loan program versus a typical lease program. A Power Purchase Agreement (PPA) is just a lease with a different name.
|Issue||Green Sky Loan||Typical Lease or PPA|
|Federal Tax Credit Rebate||You get the 30 percent tax credit rebate||The lease company gets the 30 percent rebate|
|Lien placed on your property||No lien on your property||Lien is registered on your property, hard to sell house.|
|Annual increase in monthly payment amount||No Annual increase in the monthly payment amount, 180 equal monthly payments||Typically the monthly payment is increased by 2.9 percent annually|
|The end of the payment period||After 15 years you own the system free and clear||After lease period expires you receive a bill to purchase the system or the system is removed|
|Tax Deductible Interest||The interest on the loan is tax deductible since it is a home improvement loan||No portion of the payments made to a lease company is tax deductible|
Property Assessed Clean Energy (PACE) loans are available in some communities. The loans are repaid over the assigned term (typically 15 or 20 years) via an annual assessment on your property tax bill. One of the most notable characteristics of PACE programs is that the loan is attached to the property rather than an individual. We are a registered solar installer with most of the PACE loan providers in our service area.