SunPower and its loan partner, Technology Credit Union (TCU), said they are offering 15-year 0.99% annual percentage rate loans and 25-year 1.99% loans for Equinox, SunPower’s home solar system, and SunVault, its residential and light commercial storage product.
At $72 a month for a 4 kw Equinox home solar system, the electricity savings could equal the monthly cost of the 25-year loan, said Norm Taffe, executive vice president at SunPower. Under the loan program, a 13 kWh SunVault energy storage system would cost an extra $61 a month, he said. Individual dealer pricing might vary.
The loans are available to applicants who have a FICO score of 640 or higher in 17 states.
As SunPower’s loan platform provider, TCU makes money charging interest to the borrower and through a fee charged to SunPower. SunPower does not charge additional fees to borrowers.
According to Taffe, the declining cost of solar, the solar investment tax credit, the current low interest rate environment, and the demand for solar across the U.S. led SunPower to create the loan offerings.
“The recent blackouts in Texas are making it even more evident to consumers everywhere that solar can help ensure energy continuity,” he said.
With the increased demand for solar nationally, there has also been a shift in how consumers finance their systems. In 2014, about 70% of residential solar installations were financed via leases. Since 2017, however, cash and loan financing have dominated. According to Wood Mackenzie, in the first three quarters of 2020, nearly three-quarters of solar installations were purchased through cash or loans.
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