California Credit Union Standardizes Residential Solar Loans
The Technology Credit Union (San Jose, CA) reported on 23 August that it has established two new solar loan programs for residential customers. From a 23 August San Jose Business Journal article, see:
http://www.bizjournals.com/sanjose/news/2011/08/23/san-joses-technology-credit-union.html
"The programs are intended to provide financing to customers interested in adding solar panels on their homes or residential properties. San Jose-based Tech CU was founded by the employees of Fairchild Camera and Instrument Semiconductor Division and has been serving Silicon Valley for 50 years.
The loan programs are being called Solar $mart, and build on the credit union's work with the Bay Area Climate Collaborative on SunShares, which allows residents, businesses and governments to receive discounts on solar energy purchases through group buying.
For more information, Tech CU is holding a seminar Aug. 24, 6 to 7:30 p.m., at SunPower Corp. Click here for more information or to RSVP.”
Technology Credit Union members who participate in a SunShares solar installation can choose to receive a pre-negotiated discount using SunPower solar panels or they can participate in a group buy to negotiate a group discount with a solar provider.
Financing for all Tech CU projects will be provided through Solar $mart. Two loan options are available:
Solar $mart Home Equity Line of Credit: A secured loan that provides financing up to 80 percent loan-to-value with credit limits from $5,000 to $75,000.
Solar $mart Unsecured Loan: 10- or 20-year term loans from $10,000 to $50,000.
In addition, individuals may qualify for Federal tax credits for up to 30% of their solar project. For a complete list of qualifying projects, visit www.energystar.gov/taxcredits. Be sure to consult a tax advisor regarding tax credits and possible interest deductibility on Solar $mart Loans.
This is great stuff. Perhaps it is telling that this loan program is made available at a credit union, and not a bank. However, it is good news. The financing ROI model for solar PV residential installations is established, clear, and feasible in states like California, Arizona, Colorado, New Jersey, and Maryland. Having a vehicle for a straight-forward loan process is a tremendous tool for moving this process along, promoting renewable energy, addressing global climate change issues, and creating jobs.
John Whitney AIA is Senior Vice President for Business Development at Conductrus, a software as a service (SaaS) provider of workforce scheduling software tools for businesses with mobile field service management needs. He is also Founder and Principal at the Clean Energy Action Project, a cleantech research and renewable energy consulting enterprise.