SolarCity Corp Unveil New Loan Scheme

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SolarCity Corp Unveil New Loan Scheme
By BrokenSphere (Own work) [CC BY-SA 3.0 or GFDL], via Wikimedia Commons

SolarCity, the largest supplier of solar has announced plans today to offer new customers in 14 states across the US, loans at favorable interest rates to boost sales.

The new offering

The new loan scheme replaces the previous MyPower product (which was a 30 year loan), with greater optionality on length of loan and allowing for early full or partial repayment with no additional costs.

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The fixed monthly payment loans can be either ten years with an annual interest rate of 2.99 percent, or a longer 20-year loan at 4.99 percent and repayments starting at $50 per month. With either loan comes a 20 year warranty and continuous monitoring of the product.

“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 the CEO of SolarCity, Lyndon Rive. “This program 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.”

At the moment these loans are only available in 14 states, Arizona, California, Colorado, Connecticut, Delaware, Maryland, Massachusetts, New Hampshire, New Mexico, New Jersey, New York, Oregon, Rhode Island, Texas and Washington, D.C, but the company hopes to extend this to additional states in the future.

Tax Benefits

By providing a loan for the customer to actually purchase the solar panels, as opposed to leasing them, the company is transferring the tax benefits back to the homeowner. Legislation allows a 30 percent tax credit to the owner of the equipment (the customer now), which can be used against any owed taxes.

SolarCity leveraging their market share

The old MyPower product was an in-house loan. This new loan will be distributed by third-party providers, reducing the company’s exposure to defaults. Tim Newell, the SolarCity vice president for finance said, “More and more lenders have entered the market to provide solar loans,” he continued, “and through the size of our company, we are able to work with them to provide really attractive rates.”

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While studying economics, Brendan found himself comfortably falling down the rabbit hole of restaurant work, ultimately opening a consulting business and working as a private wine buyer. On a whim, he moved to China, and in his first week following a triumphant pub quiz victory, he found himself bleeding on the floor based on his arrogance. The same man who put him there offered him a job lecturing for the University of Wales in various sister universities throughout the Middle Kingdom. While primarily lecturing in descriptive and comparative statistics, Brendan simultaneously earned an Msc in Banking and International Finance from the University of Wales-Bangor. He's presently doing something he hates, respecting French people. Well, two, his wife and her mother in the lovely town of Antigua, Guatemala. <i>To contact Brendan or give him an exclusive, please contact him at [email protected]</i>
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