Comments on: Solar Energy Securitization on the Horizon as Industry Players Look for New Finance Vehicles

By: Zachary Shahan

Zachary Shahan — Mon, 24 Sep 2012 18:37:00 +0000

do you know if this is something that is difficult for many households? in other words, is it currently possible for some houses to lease but not possible for them to get such a loan?

By: SolarOne

SolarOne — Mon, 24 Sep 2012 13:35:00 +0000

The best ROI over the warrantied life of the system in the residential sector, aside from paying cash, is for the homeowner to purchase a system, not lease, with a mortgage backed loan. Securitizing these types of loans, as opposed to leasing, will likely be the primary solution to tax equity investments. Homeowners can collect the tax and other utility incentives and the investors can collect payment on the coupon.

By: Oakland

Oakland — Fri, 25 May 2012 19:58:00 +0000

In most cases, the SRECs alone do not cover the cost of the system. The credit worthy customer makes up the difference between what is owed on the system.

By: tuanzanthony

tuanzanthony — Sat, 19 May 2012 07:51:00 +0000

Right now, the mortgage rates are so low that you might be able to refinance with a 15-year fixed-rate loan, thus escaping the debt trap faster than you might have originally planned, while also cutting your monthly loan payment. The icing on the cake is the outrageous amount of interest you will avoid paying. I have used only 123 Refinance to find rates

By: Ljpnatural

Ljpnatural — Fri, 18 May 2012 16:35:00 +0000

The one thing I have trouble with in this area is a solar system will continue to produce electricity regardless of the financial worthiness or unworthiness of a commercial or residential solar customer. For example, in New Jersey for a typical residential system even if the house is vacant for whatever reason the solar system is still producing electricity and solar renewable energy certificates (srec’s). Based on this MONEY is still being produced by the solar system. What is the FINANCIAL risk for a lender? Granted there are legal issues but these could be written into the contract. With this in mind why is the credit score a major factor in leasing a solar system whether it is an equipment lease or a power purchase agreement. The typical credit score for qualifying for either of these is 670 or greater. Many companies involved in solar equipment leasing or power purchase agreements are missing the opportunity to sign a great deal of contracts because of their “preceived risk” of the potential customer. The “risk” is extremely low if nonexistant since the solar system is producing MONEY. Perhaps this view is idealistic but the upside is obvious.