The Capital Good Fund announced it is teaming up with New England-based solar installers Cotuit Solar and Got Sun Go Solar to create a low-income rooftop solar loan program dubbed DoubleGreen Solar Loan.
The loan program connects homeowners with 25-year loans with low annual interest rates starting at about 3.1%. Typically, 25-year loans carry interest rates of 7% or more, so the program offers significant savings, plus access to financing that may otherwise be inaccessible to low- to middle-income families.
“At a time of rising energy prices and geopolitical instability, it is more important than ever that all families have access to affordable, reliable, homegrown clean energy. A person’s FICO score shouldn’t prevent them from being able to lower their energy bills and participate in the solution to the climate crisis,” said Andy Posner, Capital Good Fund Founder and CEO.
One of the program’s most recent customers, Maria Hildalgo, received a $38,000 loan for her 8 kW solar array, making her one of the first in her community to have residential solar.
Image: Cotuit Solar
“I decided I wanted to own my solar panels for many reasons. It is cheaper than my electric bill, the tax credits are great, and it is good for the environment. As a mother, I want to protect my children’s future, financially and environmentally. By giving me this loan, Capital Good Fund has made it possible for me to realize this dream,” said Hidalgo. “I hope to see more solar around me and I also hope others who choose solar are as lucky as me to work with a community-oriented lender like Capital Good Fund.”
Capital Good Fund is a US Treasury-certified community development financial institution that works to advance a poverty-free, inclusive green economy through equitable loans. It assists with a variety of needs, including renewable energy and energy efficiency home upgrades, immigration expense assistance, and COVID-19 related expense assistance.
Conrad Geyser, principal at Cotuit Solar, praised the program, commenting, “It offers an easy, non-secured, fixed-rate loan that gives clients financing to adopt solar without a lot of trouble.”
Ronald Bennett, president of Got Sun Go Solar agreed, sharing, “Solar energy is an affordable alternative, and Capital Good Fund is making that statement more of a reality with their financial solutions. I am proud to work with a partner who shares in this passion and works to promote an overall greener environment.”
Since its founding in 2009, the Capital Good Fund has financed over 9,000 loans totaling more than $20 million with a 95% repayment rate and graduated over 1,800 people from their community coaching program.
Learn more about solar in Massachusetts and Rhode Island in our 50 states of solar series.
This content is protected by copyright and may not be reused. If you want to cooperate with us and would like to reuse some of our content, please contact: editors@pv-magazine.com.
$38,000 for an 8kW array at $4.75/W seems a rip-off!
Ques: Is Maria’s “low income” even sufficient to take advantage of the 26% FETC or $9,880 in the year(s) ahead?
The 3.1% interest over 25 years extends the breakeven payback period by $54,654/$38,000 = 143% of the nominal breakeven period. Ie: 5-yrs becomes 7+ years.
Loan Fnance Numbers:
Payment Every Month $182.18 (or $2,186/yr)
Total of 300 Payments $54,654.89
Total Interest $16,654.89 (avg $55.52/mo)
Ques: What is Maria’s present average annualized electric bill and kWh usage including forecast rate increases the 8kW array was based on?
What is the nominal breakeven payback period for the $38,000 array cost before and after the 26% FETC? And will Massachusett’s net metering caps limit (hence extend) it’s payback down the road?
Suspect answers to the above would be of interest to many of your readers.