In what it’s calling a first for the solar lending industry, BlueWave Solar has introduced its new FlexRate loan. The new financing mechanism allows the company to offer its products through home solar installers giving them another option for their rooftop solar consumers.
The FlexRate loan carries a fixed rate for its first five years and in subsequent years rates adjust by no more than 1 percent, according to BlueWave. The company said the loan can reduce total cost of ownership of residential rooftop solar if homeowners choose to pay off their solar rooftop installations early, particularly in the first five years of the loan.
“Solar customers see value in owning their power and typically pay off their solar loans early. When borrowers do the math on how much their solar panels cost with other lenders’ loans, it becomes clear that FlexRate offers the lowest cost of ownership over the first 5 years,” contended BlueWave Managing Director of Capital Markets Alexi Evriviades. “FlexRate helps customers go solar affordably while helping our partners differentiate themselves in a crowded marketplace, so it’s a win-win.”
The new financing mechanism joins other options in the industry that reduce the upfront costs of solar power. Those include fixed rate loans, leases and power-purchase agreements.
“The FlexRate loan really rounds out the financing options we can present to our customers. It sets us apart from other installers because it’s unique in the market, and BlueWave’s low Technology Platform Fee means that we can protect our profit margin. Now we can offer rooftop solar with flexible or fixed rate financing, only from BlueWave. No one else offers that,” said Nancy Moore of Hilton Head Solar in South Carolina.
The Boston-based BlueWave Solar operates up and down the East Coast. It launched as a large-scale solar development company but has quickly moved into the community solar space and residential financing space. The company said it has thousands of residential customers in its markets.
“Making solar accessible to more people is what we do here every day and offering innovative and flexible financing is key to achieving that vision. We want to enable our solar installer partners to grow their businesses with unique offerings that their customers love, and it’s already clear that our new FlexRate loan is serving a need in the market,” said BlueWave Solar CEO Trevor Hardy.Tweet