It features long terms, low APRs and the opportunity to use your tax credits for a the lowest possible monthly payment.
Jennifer signs a loan agreement for solar and her system is installed. Her first payment occurs 60 days after her system is installed. Assuming she has outstanding tax liability she can file for the federal tax credit the following year. Her re-amortization will happen 18 months after the system is installed.
If she makes a voluntary payment of 26% of the loan amount by the 18th month her monthly payment will stay the same.
If she makes a voluntary payment of more than 26% of the loan by the 18th month her monthly payment will adjust down. This is usually the case in South Carolina since we have state tax credit which caps at $3500/year.
If she makes a voluntary payment of less than 26% of the loan by the 18th month her monthly payment will adjust up.
*If you have a specific dollar amount you would like to apply to the loan within the first 18 months, we can estimate payments for you, just ask.
There is no lien on the customer's home or property. Instead, the customer gives the lender a security interest in the solar system.
The lender will typically file a UCC-1 and a fixture filing, as applicable, to create a lien on the solar system. Interest rate stays fixed for the lifetime of the loan regardless of whether the customer makes a 26% voluntary payment by month 18.
There is no prepayment penalty. Customers are encouraged to pay off their loan early.
What is a re-amortization?
For the Sunlight loan the re-amortization is the act of recalculating the monthly payment based on the balance of the loan at the time of the re-amortization.
What if I pay more than my minimum monthly payment during the first 18 months?
Any amount you pay above your monthly payment in the first 18 months will get applied toward your payments due. If you pay more than monthly payment at this point, it will not change your minimum monthly payment until the re-amortization on the 18th month.
What if I want to make a payment above my minimum monthly payment after the 18th month?
Yes, you begin accruing interest daily once your loan is funded. Paying more than your required monthly payments in the first 18 months will not reduce the interest that is accrued. Your monthly payments will first go toward any accrued interest then toward your principal.
Am I paying interest in the first 18 months?
Yes, you begin accruing interest daily once your loan is funded. Paying above your monthly payments in the first 18 months will not reduce the interest that is accrued. Your monthly payments will first go toward any accrued interest then toward your principal.
Can I pay the loan off early?
Yes! You can prepay the loan in full or in part at any time. Simply call your lender to find out the payoff balance. Remember, the earlier you pay it off, the less interest you will have accrued on the loan. There is no charge or penalty to prepay your loan or any portion thereof.
What is the charge for a late payment?
If you make a late payment you will be charged the higher of either 5% of your monthly payment or $25. Paying by automated payments makes sure you never have a late payment and never hurt your credit score due to a late payment.
When consumers sell their homes, they have two options. The most common choice is to pay off the outstanding principal balance on the solar loan and sell the home with the added value of a paid-off solar system. The second option is to ask the homebuyer to apply to take over the loan payments where the original homeowner left off - this is called transferring the loan. The homebuyer must meet all of the lender's credit criteria to take over the balance of the loan.