sunMAX - Close Sale: Loan Contract

Overview
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.

Key Points
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).

Financing Overview
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.
  • Post-Install
    • Installer receives Profits = Installed Cost - Bill of Materials
    • Within ~18 months, Customer should make Dispersal Payment ($3,000 from ITC).