US residential installer SolarCity is now offering customers the chance to immediately pay less for solar each month than they previously paid for utility bills while collecting thousands in additional, applicable tax credits through its new loan programme that is now available in 14 states.
“We can now offer a loan that makes it possible for many customers to pay less for solar from day one, and still receive thousands back in tax credits on top of that,” said SolarCity CEO Lyndon Rive. “This programme will allow thousands of additional customers across the U.S. to install solar this year and start saving money immediately, and we expect to work with multiple lenders that will allow us to expand to several new states by the end of the month with the same great terms for our customers.”
A 10-year loan will have an annual interest rate at 2.99% with a 20-year loan with a 4.99% interest rate. In addition, customers will be able to prepay their entire balance or prepay a portion of their loan to lower their monthly payments with no fees or penalties. The loans package also includes a 20-year warranty, production guarantee and continuous monitoring.
The new loans are replacing the MyPower product, a solar financing option that combined a low upfront cost and the utility savings of a PPA, whilst giving the customer the benefits of ownership. This product constituted the US’ most affordable solar loan, with a lower cost than PPAs in many locations; in circumstances allowing customers to pay as much as 40% less for solar than utility power, according to SolarCity.
The company's new solar loans are available in Arizona, California, Colorado, Connecticut, Delaware, Maryland, Massachusetts, New Hampshire, New Mexico, New Jersey, New York, Oregon, Rhode Island, Texas and Washington, DC, and the company expects to announce new locations soon.