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CED Greentech

CED Greentech. Residential Financing Overview. Residential financing terms (recap.). Loan programs Secured – Equity required Unsecured – No equity required Homeowner owns solar system and receives all rebates/tax benefits Solar Lease Fixed payment by the month

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CED Greentech

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  1. CED Greentech Residential Financing Overview

  2. Residential financing terms (recap.) Loan programs • Secured – Equity required • Unsecured – No equity required • Homeowner owns solar system and receives all rebates/tax benefits Solar Lease • Fixed payment by the month • Annual escalator (2.5%) • Leasing company owns equipment and receives all rebates/tax benefits • Flexible options ($0 down, pre-pay, extra benefits) Solar PPA (Power Purchase Agreement) • Fixed payment by the kWh • Same features as Solar lease, no tax on monthly payment PACE (Property Assessed Clean Energy) 1. Financing is secured by deed, stays with property

  3. Residential financing • 80% of US homeowners have FICO above 640 • 50% of home improvement projects over $5k are financed • 7% of US homeowners have scores between 600-640 • Ability to offer financing increases the sales closing ratio an average of 20% • Offering multiple financing options can also increase closing ratio • No Silver bullet – PPA/Lease/Loan • Contractors have to be well versed at ALL options! • Payment buyers – need the lowest monthly payment • Challenged credit – 40% of applications can not be approved by “A” paper lenders (FICO 680+) • No tax appetite

  4. 25-year PPA program – formerly Sun Cap-NRG • Offering in CA, NM, HI, AZ, TX, NY • Customer - Sunnova – Contractor - No distributor involvement • Approved products: Hanwha, LG, Phono, Suniva, UP Solar, SMA, Fronius, Enphase, Power-One, SolarEdge • $0 down, low-upfront options ($0-$5,000) • Monitoring, production guarantee, full system warranty, repair service and insurance included • Min. FICO – 650 – lowest on market • Ability to transfer contract to new homeowner at same terms • End of term options: • Remove equipment at no cost to homeowner • Renew contract for 5 years • Purchase at fair market value • White-labeled customer proposal • Cash-flow positive  PPA payment is lower than power bill (approx. 20%)

  5. Sunnova vs. Lease/PPA competition

  6. Electric & Gas Industries Association members only  CED Greentech • EGIA is non –profit, promoting energy efficiency and renewable energy • Contractor has to be fully approved – Application package • www.egia.org/cedgreentech Process: • Apply for credit – paper and paperless application (online or phone) • Get Pre-Approved: Instant credit decision(unsecured). Credit center explains terms and Conditions to customer in one call • Get Stipulations: Customer supplies required stipulations (picture, email, fax, mail) • Get Funded: Customer is provided the documents via notary or email. Fund are electronically transferred to contractor’s bank within 24-48 hours.

  7. EGIA Secured Financing(PowerSaver loan) When to use? • Homeowner has equity • Homeowner is fine with 2nd mortgage – 100% LTV max. • Homeowner can write off loan interest • Low monthly payment beats the monthly electricity bill Secured Installment Loan (FHA): • 660 minimum FICO • $7,500 min. , $25,000 max. amount • 15 and 20 years terms • 6.125% - 9.24% interest rates • No contractor loan fees • No appraisal, title fees • 1% of loan due at close • Drive-by appraisals only • Owner-occupied single-family homes and HUD approved condos are eligible • Must own residence for 1 year • Lowest possible monthly payment

  8. EGIA Unsecured Financing When to use? • Homeowners with no equity • Homeowners who do not want to encumber their property with 2nd mortgage or refinance • Homeowners wary of leasing / PPAs • Homeowners who want to cover rebates and tax credits • Cash buyers who prefer “same-as-cash” options Highlights: • Unsecured loans to $40k • No proof of income • Terms to 10 years • Fixed APRs starting at 3.99% • No interest-no payment options for 6/12 months • No interest with minimum payment options for 6/9/12/18 months • No interest with equal payment options for 36/60 months

  9. Solar Step Down program • No equity or appraisal required • $25,000 credit-secured loan • 650 minimum FICO • 100% upfront funding • No prepayment penalties • Terms up to 20 years • Fixed rates • One-time loan re-amortization at no cost within the first 24 months • Online pre-qualification form Plus 1 program – Qualified buyers can borrow up to $15k • Save Now, Pay Later Loan • $15,000 max. loan amount • No interest if paid within 18 months • No payment necessary during first 18 months • Unsecured, no collateral • 100% upfront funding • No pre-payment penalties • Pay As You Go Loan • $15,000 max. loan amount • First payment due 30 days from funding • Unsecured, no collateral • 100% upfront funding • No pre-payment penalties

  10. PACE financing, currently available in Sacramento, more areas coming soon • Contractors have to be certified by Ygrene (training program) • 100% financing for energy efficiency, renewable energy projects • Financing is repayable over 5 – 10 - 20 years via property taxes @6.95% • No credit check - simple, online process • Minimum $2,500 project cost • Mortgage notification letter – lenders are notified about financing • Maximum of 10% of property value can be financed • Homeowner must be current on mortgage, property taxes for last 36 months, can not be in Bankruptcy • Loan can not take property over 95% LTV • Funding upon project completion • 3% contractor fee, $650 district fee, $50 application fee

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