Solar system financing

[silversaver]

What utilities company are your using? I know you are in San Diego area but not sure which utilities company...


Sorry just saw you mention SCE, so CSI is still available for your system


Have you ask how they calculate you solar loan? simple interest as car loan or like a home mortgage with compound interest?

[foobar]

Just saw the link you provided. It is a 8kW DC system using Canadian Solar and Power one inverter at about $31k cost before incentives right?

Yes, Correct. *edit* actually after looking at the quote again, installer said could produce same output using a few less panels revised total gross cost is ~$28k

How did you get to $19k after incentive?

I was basing it purely on quote provided by the installer. ~$1500 from SCE, the rest from the federal govt.

10,200kWh 1st years production for a 8kw system? I guess you are installing the panel in mutilple direct not facing South.

Correct, that's what's quoted in the proposal. Yes, it's installed on multiple sections of my roof but not specifically South and I forgot the reason

I think you can get better deal if you keep shopping.

Whoa, I thought ~$5 per watt was the 'ideal' price point from reading posts in here, so I assumed the $3.92 per watt I was quoted was far ahead of that. Where do you think I should be at $/watt?

[silversaver]

$19k is net cost - Yes
Gross cost (the cost prior to incentives) is ~31k.

I apologize for the lack of info, I am pretty ignorant to all the needed info but I will do my best to provide it.

Yes, correct from what I was advised, there is a bank that will finance the Solar system @ 2.99% plus the additional administrative upfront cost of $3k. From a few threads I've read on the forum , it appears to be common..

$3,000 bank fee? lol What installer offering you this deal?

[silversaver]

silversaver, I am getting the 30% back in tax return so that isn't part of the down payment. Instead the loan is structured so that there are actually 2 loans - first loan for 1 year at 0% enough to cover the amount for incentives. The 2nd loan is the $19k to cover the cost of everything minus incentives. It's an 8kW system , year 1 production 10,000 kW/h output. Again the downside thus far is the $3k they want to stack on top of the $19k to initiate the financing. I feel that the loan @ 2.99% is tolerable but the $3k upfront finance charge is not.

Also, could you check out the quote for me let me know if it seems legit? http://www.solarpaneltalk.com/showth...eedback-please

The rep told me that the price per watt is $3.92 before incentives (and before financing) which seems TGTBT

Just saw the link you provided. It is a 8kW DC system using Canadian Solar and Power one inverter at about $31k cost before incentives right? How did you get to $19k after incentive? 10,200kWh 1st years production for a 8kw system? I guess you are installing the panel in mutilple direct not facing South.

I think you can get better deal if you keep shopping.

[foobar]

So the 19K is your net cost after Fed incentive right? Your system cost before all the incentives should be around $25 to $26k right? You are giving out info piece by piece, and it make hard to understand.

What do you mean by $3k upfront finace charge? Are you saying to get 2.99% for 12 years you need to pay additional $3000?

$19k is net cost - Yes
Gross cost (the cost prior to incentives) is ~31k.

I apologize for the lack of info, I am pretty ignorant to all the needed info but I will do my best to provide it.

Yes, correct from what I was advised, there is a bank that will finance the Solar system @ 2.99% plus the additional administrative upfront cost of $3k. From a few threads I've read on the forum , it appears to be common..

[foobar]

POCO = Power Company. You still get a bill.

Sunking, so you are suggesting that the smarter financial move for my situation, is to continue paying monthly power bill instead of purchasing solar, even despite the scenario I had proposed? If so, can you explain to me why that would be a smarter fiscal move? I'm asking with sincere curiosity and am always open to understand others' opinions especially when it comes to fiscal decisions.

[silversaver]

So the 19K is your net cost after Fed incentive right? Your system cost before all the incentives should be around $25 to $26k right? You are giving out info piece by piece, and it make hard to understand.

What do you mean by $3k upfront finace charge? Are you saying to get 2.99% for 12 years you need to pay additional $3000?

[Sunking]

What's POCO?

POCO = Power Company. You still get a bill.

[foobar]

silversaver, I am getting the 30% back in tax return so that isn't part of the down payment. Instead the loan is structured so that there are actually 2 loans - first loan for 1 year at 0% enough to cover the amount for incentives. The 2nd loan is the $19k to cover the cost of everything minus incentives. It's an 8kW system , year 1 production 10,000 kW/h output. Again the downside thus far is the $3k they want to stack on top of the $19k to initiate the financing. I feel that the loan @ 2.99% is tolerable but the $3k upfront finance charge is not.

Also, could you check out the quote for me let me know if it seems legit? http://www.solarpaneltalk.com/showth...eedback-please

The rep told me that the price per watt is $3.92 before incentives (and before financing) which seems TGTBT

[silversaver]

You really don't need any money out front, becasue bank will use your Federal incentive 30% as your down payment and finance the rest.

If your system cost $19,000 bank will use $5,700as your down and financing $13,300 @2.99% for 12years:

Amount financing: $13,300
monthly payment: $110.03 X 144 months
Total interest pay: $2,544.79

Total net cost at the end of 12 years is $15,844.79

I haven't done one before, and I'm not sure if bank will charge any additional fees


How big of system are your getting for 19K? to offset your average $180 bill?

[foobar]

FWIW the cash price of the solar is $19k. +$3k finance charge == $22k. I ran it through amortization calculator @ 2.99% over 12 years and $182/monthly is the payment.

[foobar]

If you cannot afford to pay in cash, you have no biz buying solar anything. It would be financial disaster to borrow money for a solar system. If you do not like paying the POCO $100/month now you will hate it paying the POCO $25/month plus a $250/month loan payment for 12 years silly. You would double or triple your current electric bill.

What's POCO? I tried googling that no results.

Financial 'disaster'? That sounds melodramatic. My current monthly SCE is about $180 on average.. From what I was advised, my financed solar equipment @ 3% (with the $3k rolled into the loan) is exactly the same @ $180. The difference is after 12 years it's paid off and no more electricity bill. The other benefit is no prepayment penalty so I can pay it off faster and it'll be less interest.

Let's say that I don't buy the solar. Let's just say I continue paying my $180 to SCE and not even considering the aggressive rate increases, in the first year alone I would've lost out in ~$2k. In aproximate 3 years would've paid for the interest rate (for the full 12 year term) plus the $3k upfront finance charge. However, I'd love to find out if there's a finance company that'll forego the $3k upfront - That was the original intent of my question.

Sunking, I respect your advice so I'd love to hear what you suggest I should do, instead of buying solar since I have no business doing it.. I have to continue paying for SCE electric service right?

[Sunking]

If you cannot afford to pay in cash, you have no biz buying solar anything. It would be financial disaster to borrow money for a solar system. If you do not like paying the POCO $100/month now you will hate it paying the POCO $25/month plus a $250/month loan payment for 12 years silly. You would double or triple your current electric bill.

[foobar]

Anyone know of solar financing available for less than 3% over 12 years WITHOUT the $3k finance up front fee?