Click here to read how to qualify your customer for loans. After you've proposed the final selling cost & financing methods, it's time to procure a flexible, affordable loan that works for the end-user. Ubiquiti has identified loan partners & programs available nationwide (US) here.
Regardless of loan, here are a few key loan characteristics to negotiate for your solar customers:
- Low Interest Rates (ex. 620 FICO credit score or higher usually needed)
- No Pre-Payment Penalties (ex. 20-year loan paid off in 17 years)
- Flexible Payment Plan to match Incentive Dispersal (ex. No payments on 30% during first 18-months for 30% ITC savings).
The following details outline the process by which a 16-panel, 4kWdc system is financed:
- Customer Proposal Tool
- Bill of Materials Cost = $5200 ($1.30/W).
- Installed Cost (Installer price to Customer) = $10,000 ($2.50/W).
- Loan Qualification
- Installer qualifies Customer via Loan Partner (FICO score, etc.).
- If approved, Bank releases funds ($10,000)
- Customer makes Monthly Payments with Solar Savings (pocketing net remainder of Savings) until Loan = Amortized.
- Installer receives Profits = Installed Cost - Bill of Materials
- Within ~18 months, Customer should make Dispersal Payment ($3,000 from ITC).