By Patrick O’Grady for Phoenix Business Journal
SolarCity is making a play for new customers in Arizona and seven other states with a new financing model that would allow its customers to own, not lease, their systems.
The California-based solar installer, the largest in Arizona and one of the largest in the U.S., rolled out its MyPower program that essentially is a financing model tied to a 30-year loan and is dependent on how solar systems perform.
SolarCity made great inroads in Arizona and other states offering 15-year leases on solar systems that, when the lease payments were made, often resulted in small savings for those leasing the systems compared to utility providers.
However the leases were born during a time when few homeowners could tap any equity to buy a system outright, the cost of solar systems was still high and many banks weren’t lending in the solar space.
That has changed, as many Valley installers have begun offering purchase plans for those who don’t like the lease.
SolarCity’s is different than most. It features a 30-year loan at 4.5 percent interest. How much you pay on the loan, however, is tied to the system performance and based on the kilowatt-hours it produces.
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