Solar loans are becoming another method for homeowners looking to go solar. They provide the benefits of a lease while still allowing the customer to own the system. As a result, companies that traditionally focused on leases are now starting to offer solar loans. Tools are even being released now specifically designed to to help homeowners choose the best loan for them.
Sungage Financial has been providing solar loans from the start, and has now partnered with Digital Federal Credit Union, better known as DCU, a federally chartered credit union based in Massachusetts. Together, they have created a $100 million residential solar loan program. Through this new partnership, DCU will leverage Sungage’s platform and installer network to finance approximately 4,000 solar installations nationwide. Sungage, which currently offers a solar finance program in Connecticut, will first expand its operations to serve installers and homeowners in Massachusetts, New Jersey, and New York. In 2015, Sungage will expand to additional active solar markets across the United States.
Sungage created the industry’s first secured solar loan, a product in which the solar energy system serves as the collateral — so no home equity is required. Enabling homeowners to save on energy and capture the financial benefits of solar ownership, the Sungage Solar Loan, for which DCU will serve as lender, does not require a down payment and offers flexible repayment terms. Homeowners start the process with a personalized solar savings plan, Sungage’s online tool for assessing the financial attractiveness of solar projects, and then apply for credit online. The program supports 24/7 online access to solar credit, providing installers and homeowners with flexibility and ease throughout the financing process.
“We are very excited to partner with DCU, one of the nation’s leading credit unions,” said Sylvain Mansier, CFO and co-founder of Sungage. “Our platform, combined with DCU’s local, regional, and national reach, as well as their consumer lending expertise, makes it easier than ever for homeowners to go solar and save money. We believe this will be a market-leading program.”
Debbie Taverna, Vice President of Consumer Lending at DCU, added, “DCU is thrilled to be partnering in this innovative financing program with Sungage Financial. The partnership provides homeowners with the opportunity to get efficient and reliable solar technology at an affordable cost. Bringing continued value, cost savings, and new product offerings is at the foundation of DCU and what we offer to businesses, consumers, and our members.”