Cgb NCC Homeowner Workshop

Home Energy ImprovementsMarket Trends, Homeowner Resources

and Financing Solutions

Agenda▪ 3 big trends in the market for residential energy upgrades

▪ Solar Financing Options– Leasing– Owning, using Smart-E Loan to finance

▪ Financing for Natural Gas, Insulation and more

▪ Financing your project– Audience participation!

At least 1 GW potential or $4.5 billion of investment reaching 150,000 homes.

Less than1% penetration, but growing rapidly.

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Solar has never been more affordable▪ High electric costs▪ Lower installed costs

New financing options make going solar easier than ever before!▪ Flexible leasing and

ownership (loan) options

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The website with all the information you

need to Go Solar

Customers save on average 30%

Goal of 280,000

Conversions by 2024

Gas companies did ~15,000

conversions in 2014

State Natural Gas Targets

– Berlin– Bloomfield– Branford– Bridgeport– Bristol– Danbury – East Hartford– East Haven– Enfield– Fairfield

– New Canaan– New Haven– New London– Newington– North Haven– Norwalk– Norwich– Plainville – Rocky Hill– Shelton– Southington

– Stamford– Stratford– Torrington– Wallingford– Waterbury– Watertown– West Hartford– West Haven– Westport– Wethersfield– Wilton– Windsor

– Farmington– Glastonbury– Greenwich– Hamden– Hartford– Manchester– Meriden– Middletown– Milford– Naugatuck– New Britain

Solar Financing Options

Overview of Financing Products Smart-E Loan CT Solar LeaseWhat Makes It Special?

Quick and easy financing from your local bank

Hassle- and worry-free, no money down

Own Your Solar? Yes No (option to purchase)

Down Payment? Not required

Not required if installed cost ≤ $4.50/W

Terms 5 - 12 years 20 years

Leasing

Introductionto the CT Solar Lease

CT Solar Lease Success Story

Meet the Hublis – CT Solar Lease customers. Click here to play a video and read their story:

http://www.gosolarct.com/SuccessStories/MeetTheHublis

CT Solar Lease▪ 20-year lease for CT homeowners

– Credit scores ≥ 640 and DTI ≤ 45%– Escalating (2.99% per year) or fixed lease options

available– May also buy down up to 50% of the value of future

lease payments (9-10% discount on total obligation)

▪ No money down** If Total System Cost <= $4.50 per Watt

CT Solar Lease▪ Additional benefit to homeowners

– Bundled insurance and warranty management from Assurant• Assurant “wraps” coverage for equipment (panels, inverters)• One-call resolution for all issues• Property and liability coverage• Multi-Year Warranty Management Program

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CT Solar Lease – FAQs

Is the lease obligation transferable if I decide to sell my house?

– Yes. The lease can be assumed by the new homeowner, subject to their credit qualification

What if a home purchaser doesn't want the system?

– If the home sale transaction coincides with the 5th or subsequent anniversary of the lease installation, the departing homeowner may choose to exercise their purchase option at fair market value. Otherwise, the financial obligation is that of the departing homeowner for the remainder of their lease payments

CT Solar Lease – FAQsIf/when the system is bought out, does the insurance still apply?

– Warranty management remains in effect at the homeowner’s option. If system is purchased, homeowner must retain his/her own property and liability coverage

Does the CT Solar Lease provide a production guarantee?– No. However, where a production guarantee compensates

homeowners for poorly functioning solar PV systems, the CT Solar Lease’s Solar Service Plan actually replaces underperforming equipment, at no cost to you

Is there a size cap for each residential lease system?– Yes, 10 kWptc

CT Solar Lease – FAQsDoes installing solar panels mean that I will no longer have an electric bill?

– Unfortunately, no. The public utility service charge is a fixed charge and remains a cost as part of your customer relationship with your electric utility.

Roofs– If you will need to replace your roof in the next few years, replacing before

having leased system installed is preferable– At the end of 20 years, if you do not want the system, the leasing company

will pay to have system removed and roof patched

What about battery back-up?– Battery back-up would need to be purchased/financed separately. The

Lease is for the PV system alone.

Owning SolarThe Flexible Smart-E Loan

Local Lenders and Local Contractors…

Helping Residents & Communities Across the State Kenny and Katie Curran used the Smart-E Loan

to go solar

Smart-E Loan Success Story

Meet the Currans – Smart-E customers. Click here to play a video and read their story:

http://www.gosolarct.com/SuccessStories/MeetTheCurrans

Smart-E Loans▪ Residential loan product for CT homeowners ▪ Low-interest financing with flexible terms

▪ 5 to 12 year terms, 4.49% to 6.99% not-to-exceed rate▪ Unsecured personal loan below market rates

▪ Easy application through local lenders▪ 40+ energy improvements▪ $25k maximum*

* CorePlus and Eastern Savings up to $40k

Flexibility and Convenience▪ No money down▪ No prepayment penalties▪ Finance health & safety measures too▪ www.EnergizeCT.com/SmartE

Local Lenders

Comparison of Solar Options

Cash Purchase Smart-E Loan (12yr) CT Solar Lease

Not-to-Exceed Rate n/a 6.99% N/A

Upfront Payment/Cost $23,748($16,623 net of ITC) $0 $0

Loan Amount n/a $23,748 ($16,623 net of ITC) N/A

Est. 1st Month Loan/Lease Payment

n/a ($239) ($72), escalating; ($90), fixed

Est. 1st Month Net Cost (Loan/Lease cost – Energy Savings

n/a ($110) $57, escalating; $39, fixed

Solar Wealth Created (net, over 20 years)

~$20k+ (incl. $7k ITC) ~$9.5k (incl. $7k ITC) $13.5k+, escalating;$15k+, fixed

Assignable No No Yes

System performance guarantee

No No Yes

Insurance and warranty bundle + lifetime O&M

No No Yes

Example: 7kW system installed at $4.00/W

*assumes 2.99% annual increase in electricity prices

Using Smart-E to Finance Natural Gas Conversions,

Insulation, and more

Special Offers Available “Free Interest”

No Interest on Smart-E Loans for Six Months until June, 2015

- OR -

Smart-E Bundle2.99% interest rate for 10 year for qualifying projects with multiple measures Solar + Attic and/or Wall Insulation Solar + Ductless Mini-Split High Efficiency Gas Conversion

(Boiler or Furnace) + Solar or Insulation

Insulation + Windows

A Smart-E Success Story

The Kennedy’s pipes had asbestos furnace was old, loud, and inefficient

Financing: 10 year loan, 5.75% HVAC - $8,134.88 Asbestos Abatement - $4,800 Financed - $9,754, $107.08/ month Energy Savings ~ $150/month

That’s $43 in their pocket every month!

A Smart-E Success Story

Meet the Kennedys – Smart-E customers. Click here to play a video and hear their story:

[video will be posted on www.EnergizeCT.com/SmartE in next few weeks]

A Smart-E Success Story

The Smart-E Bundle

Insulation and Solar

▪ Financing: ▪ 10 year loan, 2.5% ▪ Insulation - $2,100▪ Solar – $28,743▪ Loan - $22,211 or $209.42/ month▪ Savings ~ $176 /month▪ By bundling saved - $2,981.42

Your Project Here!

Financing Example

Questions & Answers

Kerry O’Neill, Managing Director, Residential Programs

860-257-2884

Kerry.oneill@ctcleanenergy.com

Intro to Cozy Home Loan

Cozy Home Loan IntroductionWhat is Cozy Home?▪ Residential loan product for CT homeowners in

Litchfield, Fairfield, and New Haven Counties ▪ Low-interest financing ▪ CT residents with low to moderate incomes ▪ 40+ energy improvements

– 10 year term, 2.99% interest rate– $3,000 up to $25,000 or – Up to $50,000 for multifamily homes (2-4 units)

▪ 40 % of total borrowed can be put towards health and safety issues (asbestos, lead, mold remediation)

Cozy Home StoryBackground:▪ 3 Bedroom house built in 1893▪ Concerned with high heating

costs

Solution:▪ Converted from oil to natural gas

using the Cozy Home Loan▪ Installed a high efficiency furnace

Financing: 10 year loan, 2.99% At $8,575 or $83/ monthSavings ~ $1200 per year

Cozy Home Loan IntroductionIncome Limits

▪ Litchfield, Fairfield, and New Haven Counties ▪ 80% of Area Median Income (AMI)

▪ Bridgeport▪ Stamford – Norwalk▪ Danbury▪ Waterbury▪ New Haven▪ Litchfield County

▪ Easy application process through AFC First▪ https://secure2.afcfirst.com/applications/cozyhome

Cozy Home Loan IntroductionIncome Limits▪ Litchfield County 80% of Area Median Income (AMI)

Cozy Home Loan IntroductionIncome Limits▪ Fairfield County 80% of Area Median Income (AMI)

Cozy Home Loan IntroductionIncome Limits▪ New Haven County 80% of Area Median Income (AMI)

Cozy Home Loan

▪ Complete and send the application form to Diane Brandstetter* – dbrandstetter@afcfirst.com – fax (610) 433-7488

*Approval takes 24 hours

Questions?

Contacts▪ Madeline Priest, Associate, Residential Programs

Ph: 860-257-2891

madeline.priest@ctcleanenergy.com

▪ Kerry O'Neill, Director of Residential Programs

Ph: 860-257-2884kerry.oneill@ctcleanenergy.com