The solar loan space is becoming increasingly crowded. SolarCity has released its MyPower solar loan, which will offer households a 30-year loan at a fixed annual interest rate of 4.5%. The company says that MyPower customers will pay up to 40% less than the cost of power from the socket.
A key feature of the Solar Loan product is that customers will pay back the loan in a similar way as they would a lease, paying per kWh the solar array produces. The big difference is that the customer is the owner of the solar system.
SolarCity is not the only company offering solar loans, there are at least nine other firms offering some form of solar loan in the U.S. Plus, experts agree that solar loans are set to grow dramatically and draw market share away from leases.
Solar City will offer its MyPower solar loan through a subsidiary, the SolarCity Finance Company. Customers with a minimum credit score of 680 may qualify. Customers can also pay off the loan early without penalty. SolarCity claims that in the event of a home being sold, that the loan can be transferred to the new owner. This is due to there being no lien on the home with the MyPower product.
Right now, MyPower will be offered in Arizona, California, Colorado, Connecticut, Hawaii, Massachusetts, New York and New Jersey. But we also know that the other players in the Solar industry will be adding more states to this list.
Solar companies looking for quality prospects for Solar Loans can contact organizations like Dataman Group Direct in Boca Raton who can provide lists of homeowners who are eco-conscious with modeled credit of 700+ - the perfect prospects for a Solar Loan program.