Types of Residential Solar Loans

Enerbank’s loan products are designed to offer flexibility and choice to homeowners engaged with independent home improvement contractors.

Due to COVID-19, Enerbank has also focused more on relationships with strategic business partners like Leap. Leap makes project quoting tools for independent home improvement contractors to use all over the United States.

To entice homeowners, Enerbank’s loans are designed to provide flexible payment options and low to zero-interest loan rates. Though, there are some important details to be aware of before digitally signing on the dotted line.

Below is more information about two of their most popular loan options: “Same-As-Cash Loan” and “Triple Option Loan”.

Same-As-Cash Loan

One of Enerbank’s most popular offers is called a “Same-As-Cash Loan”. It’s offered at 0% interest at a loan term of 12 months.

That can make a lot of sense for people who are diligent about tracking their monthly payments, since you’re essentially able to use Enerbank’s money upfront and pay the balance off over the course of a year with no interest. That’s all well and good, unless you miss a payment. If you do, you’re not going to be able to enjoy that zero interest rate anymore.

Perhaps that’s why Enerbank hasn’t been in a hurry to upgrade their online payment portal with clear visibility into how much current loan balances are and when payment is due.

A sinister perspective might be that Enerbank could be banking on the fact that not everyone is diligent enough to track their loan amounts themselves. People may unwittingly miss their balance due dates and begin to grapple with accrued interest.

However, if the loan timeframe is relatively short for zero interest, and the principal amount can be paid off at regular intervals, their “Same-As-Cash” zero interest offering might be worthy of your careful consideration.

 

Triple Option Loan

In the middle of 2019, Enerbank launched a specialized loan product for contractors to pitch, called a “Triple Option Loan”.

It’s targeted at homeowners installing solar who expect to receive the 26% federal solar tax credit, local rebates, or other incentives such as solar renewable energy certificates (SRECs) which they can monetize.

These loans have a 12 to 18 month no-payment period. If a customer pays off the balance due before the term length expires, all accrued interest is eliminated. After the 12 or 18 months is up, the balance due is re-amortized annually for the next three years.

However, if the loan timeframe is relatively short for zero interest, and the principal amount can be paid off at regular intervals, their “Same-As-Cash” zero interest offering might be worthy of your careful consideration.