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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
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* – [email protected] – fax (610) 433-7488
*Approval takes 24 hours
Questions?
Contacts▪ Madeline Priest, Associate, Residential Programs
Ph: 860-257-2891
▪ Kerry O'Neill, Director of Residential Programs
