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SolarCity introduced MyPower, a first-of-its kind solar financing option that combines the low upfront cost and immediate utility savings of a power purchase agreement (PPA) with the benefits of ownership.
SolarCity customers pay for their MyPower solar loan similar to the way they pay for a solar PPA—based on the energy the system produces from the sun—but they retain ownership of the solar panels. MyPower’s unique structure creates America’s most affordable solar loan—with a lower cost than PPAs in many locations. MyPower can allow customers to pay as much as 40% less for solar power than utility power, and unlike other loans, MyPower allows customers to prepay their entire balance or prepay a portion of their solar loan to lower their monthly payments at any time, with no fees or penalties.
SolarCity installed more residential solar in the second quarter of 2014 by providing solar electricity directly to homeowners for less than they pay for electricity from utilities. Now SolarCity is lowering the cost of solar electricity even further by leveraging its scale and low cost of capital to act as a direct lender to its customers through its subsidiary, SolarCity Finance Company. MyPower customers can enjoy a fixed annual percentage rate as low as 4.5% for 30 years. Due to its potential to lower the cost of solar electricity, SolarCity ultimately expects MyPower to expand the addressable market for solar power to areas of the United States that have traditionally seen very little adoption.
MyPower customers will enjoy a 30-year warranty, production guarantee, and monitoring service package. SolarCity backs up its agreements with the largest in-house service footprint in the industry.