SunPower Corp. and Digital Federal Credit Union announced on September 30th an agreement that may provide up to $100 million in loans for SunPower residential solar projects in the U.S. The new partnership supports the SunPower® Loan program, expanding the financing options available to homeowners interested in owning high-efficiency SunPower solar power systems.
Under the agreement, negotiated with the help of Callahan & Associates, a financial consulting firm, DCU will serve as the lead originator for a consortium of 36 credit union partners formed to support SunPower's residential loan program. After joining DCU, a homeowner may receive a loan of up to $50,000 from DCU, which may then be participated out to a credit union in the program.
"Enhancing the SunPower Loan offering with this agreement allows more homeowners to get the most efficient and reliable solar technology available with little or no money down, affordable rates and loan terms for up to 20-years," said SunPower CFO Chuck Boynton. "Once the loan is paid off, the homeowner gets free electricity for the life of the system. If they end up selling their home, they may benefit from increased home value as a result of the solar system on the roof."
"DCU's participation in SunPower's residential solar loan program is based on the cooperative principles that are at the foundation of credit unions, and our approach to the development of innovative programs that serve the needs of businesses, consumers and our members," said Craig Roy, DCU's senior vice president of retail lending.
The SunPower Loan is now available in all 50 states and Washington, D.C. In addition to owning the most efficient solar technology commercially available today, SunPower system owners also benefit from the SunPower warranty, the solar industry's first 25-year combined power and product warranty. The SunPower Loan may allow homeowners to take advantage of the 30 percent federal tax credit now available for installing solar power systems, as well as additional incentives offered by many states and municipalities.
"Callahan & Associates is thrilled to bring together innovative credit unions with member-oriented programs like this," said Jon Jeffreys, vice president of Callahan & Associates. "Credit unions are working cooperatively to bring value and cost savings to homeowners throughout the country who may significantly lower their utility bill and add value to their home with a SunPower solar system."
In several states, SunPower also offers the SunPower Lease program, featuring low monthly payments with zero down.