sunMAX - Pre-Sale: Customer Financing Options

Overview

At an industry average of $5/Watt, solar energy systems in the United States generally sell between $10,000 to $25,000. Priced at $1.50/Watt, Ubiquiti sunMAX systems sell at just a fraction of the cost.

sunMAX can be financed today via 1) Cash Purchase, or, 2) Solar Loans, as discussed below.

Cash Purchases

Cash Purchase offers the greatest ROI—but requires that the homeowner have money on-hand. It's a good idea to require an initial deposit (ex. $1000) prior to install—then pay remaining balance upon completion of work.

If the homeowner has enough cash, this can be a good investment -- the savings from reducing their electricity bill each month could represent an return on their up-front investment of 7-14%. Solar via Cash Purchase is a reasonably safe return that occurs each year for the 25+ year life of the system.

If the homeowner were to sell the before then, the homeowner could expect to benefit from a higher selling price for their house. Studies such as this one have shown that investments in solar installations increase home values by a greater than 1:1 ratio.

Loans

Although Interest payments decrease ROI, Solar Loans are generally provide the second best savings for the Customer. As many as 85% of homeowners choose to finance their PV systems with borrowed funds, including loans. Ubiquiti has identified potential Loan Providers that work with Contractors & Homeowners alike.

To read more about the process to qualify customers for Solar Loans, read here.

Other Financing Methods

You may find separate lending partners that structure a program where you can lease the system. Leasing allows the customer to enjoy the cost-savings of the system without actually owning the system. The cost-savings from offset energy bills should be greater than the payments made to 'borrow' the system.

Purchase Power Agreements (PPAs) are a financing technique offered by Big Solar companies. PPAs attract many customers since they pose little-to-no risk to the customer and promise $X savings per-month. Although considered a 'safe' investment, ROI is significantly lower for customers since the PPA Provider (aka Big Solar company) earns the 1) tax incentives (at time of purchase), and 2) majority of cost-savings (over lifetime of system).

Here's a summary of PPAs:

1. PPA Pre-Sale
- Big Solar Install company offers to lower customer's bill by $X per month through new power contract
2. PPA Post-Sale
- Provider (Big Solar) becomes Customer's new Utility; pays old Utility.
- Provider issues new Bill to Customer (locked/fixed kWh rate, lower than previous Bill).
- PPA Provider owns system; collects incentives (ex. ITC 30%, SRECs) & cost-savings ($$$ over lifetime)