Solar Power Financing
Southern California: The Solar Capital of the United States
Southern California is home to more solar-powered rooftops than any other region in any other state. Solar power systems are so popular across the Golden State, largely because they help property owners save money on electricity costs that keep rising. For many residential and commercial property owners, a financed solar power system is less expensive in the long run than staying with their local utility.
If you are in Southern California and considering installing a solar power system, the dedicated, trained and qualified professionals at Sullivan Solar Power are here to help you every step of the way. From helping you select the best type and level of solar power system for your property to installing the equipment and maintaining it to keep it working as designed, we will be your solar power partners.
We don't just design, install and maintain state-of-the-art solar energy systems. We go the extra mile for our clients to provide comprehesive support, including advising them on financing needs and helping them identify, apply for and receive all the financial incentives offered by local cities and other governmental jurisdictions they are entitled to receive. Sullivan Solar Power is a solar power industry leader dedicated to making all of Southern California a cleaner and greener community.
Residential Solar Power Financing Methods
The innovative Property Assessed Clean Energy (PACE) program allows property owners to finance solar power systems through property taxes without spending any money out-of-pocket and without a credit score requirement.
Certain territories throughout Southern California are offering residential homeowners access to low interest financing for energy and water efficiency projects in their homes. Sullivan Solar Power is an approved PACE contractor for the two programs offered in our service territory, the Home Energy Renovation Opportunity (HERO) and YGrene. The HERO program is a financing program available for homeowners in the Inland Empire, Orange County and San Diego and YGrene is available in Coachella Valley and Chula Vista. This type of financing is known as Property Assessed Clean Energy financing (PACE) and is a great opportunity to finance a solar system based on property valuations rather than qualifying credit. PACE was named one of the top 20 ideas that can change the world by Scientific American magazine. In most cases the property tax assessment stays with the property if sold. Coupling HERO financing with a Pre-Paid Solar Lease is one of the most advantageous solutions currently available and typically locks in a homeowner with a lease rate lower than their lowest utility tier.
The list of eligible PACE areas is expanding to include:
County of Imperial: Brawley and El Centro
County of Los Angeles: Alhambra, Azusa, Baldwin Park, Bellflower, Bradbury, Carson, City of Industry, Claremont, Covina, Diamond Bar, El Monte, El Segundo, Gardena, Glendora, Hawthorne, Hermosa Beach, Inglewood, Irwindale, La Canada Flintridge, La Verne, Lawndale, Lomita, Monrovia, Montebello, Monterey Park, Palmdale, Pomona, Rancho Palos Verdes, Rolling Hills, Rolling Hills Estates, Rosemead, San Dimas, San Gabriel, San Marino, Santa Monica, South El Monte, South Pasadena, Temple City, Torrance, Walnut and West Covina
County of Orange: Anaheim, Brea, Buena Park, Costa Mesa, Garden Grove, Huntington Beach, La Palma, Laguna Hills, Newport Beach, Placentia, Rancho Santa Margarita, Santa Ana, Stanton, Tustin and Westminster
County of Riverside: Banning, Calimesa, Canyon Lake, Corona, Eastvale, Hemet, Jurupa, Lake Elsinore, Menifee, Moreno Valley, Murrieta, Norco, Perris, Riverside, San Jacinto, Temecula, Wildomar and the Unincorporated Area
County of San Bernardino: Adelanto, Apple Valley, Barstow, Big Bear, Chino, Chino Hills, Colton, Fontana, Grand Terrace, Hesperia, Highland, Loma Linda, Montclair, Needles, Ontario, Rancho Cucamonga, Redlands, Rialto, San Bernardino, Twenty Nine Palms, Upland, Victorville, Yucaipa, Yucca Valley and the Unincorporated Area
County of San Diego: Carlsbad, El Cajon, Escondido, Lemon Grove, Oceanside, San Diego, San Marcos, Solana Beach, Vista and the Unincorporated Area
Please refer to the Participating Areas page of the HERO Program website for a comprehensive listing and contact Sullivan Solar Power today to learn more about this program.
20 Year Unsecured Solar Loan
This is a good alternative for customers who do not have equity in their homes or would like the option of owning the system without refinancing or taking money out of the bank. Our credit union offers unsecured 20-year loans with payments calculated on a 20-year amortization schedule. This loan is specifically geared toward solar power systems and allows the homeowner to re-amortize within the first year dropping payment to less than their current utility bill.
- Must have a 45% debt-to-income ratio after financing your PV system
- FICO score of 680 or higher is required
- Loan amounts range from $5,000 to $50,000
- Interest rates can range from 4.99% - 9.99%. Customers with FICO scores above 730 will typically see rates around 6.25%
Home Equity Line Of Credit
Home equity lines of credit (HELOC) are a very popular method of financing for PV systems as it allows customers to pay the loans down at their own pace. HELOCs allow customers to see immediate positive cash flow from day one with interest-only minimum monthly payments. Some additional facts are:
- Must have over 20% equity in your home after the loan (80% LTV)
- Must have a 45% debt to income ratio after financing the PV system
- FICO score of 700 or higher is required
- Interest rates for HELOCs range around 3% - 5% for qualified customers
12 Year Combo Loan
The SunPower combo loan allows a customer to pay down the interest rate to a low 1.99%. This is the same for Kyocera. These loans allow the homeowner to pay down the loan faster than any other finance option that Sullivan offers. With this option there are 2 loans, one that is 30% of the total contract price (this loan is a 1 year same as cash with no interest), the other loan is the remainder of the contract price for a 12 year term.
- Must have a 45% debt to income ratio after financing your PV system
- FICO score of 700 or higher is required
Sullivan Solar Power offers a lease that is the most competitive in the industry. A solar lease gives the customer the option to install solar with little or no up-front costs. The benefit of leasing is it provides 100% visibility into electric costs for the next 20 years. These agreements provide free maintenance and a production guarantee for the term of the loan.
- Monthly lease - Replaces monthly payment with a payment that is lower than current electric bill
- Prepaid lease - Prepay electricity at a heavily discounted rate at one time and do not make another payment for twenty years.
- No equity required
- FICO score of 700 or higher is required.
Designing the Right System for You
Given both the financial and social benefits associated with solar power systems, it is no surprise that solar power installations have increased more than 110 percent in recent years, according to data from the U.S. Department of Energy. To learn more about our solar energy systems and how you can benefit from an installation, contact Sullivan Solar Power today. We will develop a customized solar energy system that fits your residential or commercial needs by thoroughly assessing your property and budget, among other needs.
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