A new, first-of-its-kind solar financing option based around a combination of low upfront costs and personal ownership has just been unveiled by SolarCity.
The new financing option — which has been dubbed “MyPower” — works by allowing SolarCity customers to pay for their solar loan in a similar way to the way that they’d pay for a solar power purchase agreement (PPA). That is to say, more or less based on the amount of energy the system produces from the Sun — but in this case, while still retaining ownership of the system.
SolarCity makes the claim that, owing to this “new” approach, MyPower is now America’s most affordable solar loan, and lower than PPAs in many regions/cases. (Dividend Solar recently claimed that it offered the lowest solar loan around.)
Here’s SolarCity making its case:
MyPower can allow customers to pay as much as 40% less for solar power than utility power, and unlike other loans, MyPower allows customers to prepay their entire balance or prepay a portion of their solar loan to lower their monthly payments at any time, with no fees or penalties.
MyPower customers can enjoy a fixed annual percentage rate as low as 4.5% for 30 years. Due to its potential to lower the cost of solar electricity, SolarCity ultimately expects MyPower to expand the addressable market for solar power to areas of the United States that have traditionally seen very little adoption.
While most solar loans are provided by third-party banks and municipalities in partnership with solar manufacturers and regional installers, SolarCity has created the industry’s best financing terms by lending directly to customers as part of its full-service model. Some competitor products place a lien on the customer’s home and involve an onerous approval process. MyPower places no lien on the home — making it easier to transfer in a sale — and it only has a minimum credit score requirement of 680.
While the title of “most affordable” is subject to interpretation, and open to argument, there’s no denying that there’s a compelling service there.
In addition to the already mentioned terms/figures, MyPower customers are given a 30-year warranty, production guarantee, and monitoring service package.
As of right now, MyPower is available to customers in New York, Arizona, California, New Jersey, Colorado, Hawaii, Connecticut, and Massachusetts, with plans for expansion into other states already in the works.
SolarCity is currently offering free consultations via the phone (1-888-SOL-CITY/1-888-765-2489) or internet to those that are interested.
Image Credit: SolarCity
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