A single payment loan is a popular mechanism for financing part of the cost of a solar installation. Solar financing companies such as Sungage Financial, Dividend Solar, Green Sky, Admirals Bank and Enerbank all offer various loan packages. This type of loan is also referred to as a "bullet," "bubble" or "balloon" loan. Here is how to model it:
- Go to your account Database. Click on Financing Products, then Add Financing Product. Give your template a descriptive name, then click Create.
- On the next page, click Add Loan.
- Give your loan a descriptive name that you will later be able to understand.
- Enter Principal percentage.
Principal percentage should be: 100% - Down Payment%. So if the homeowner is putting no money down, this should be 100%. Principal is often set to 30% in order to match the Investment Tax Credit.
- Input your 'Dealer Fee', 'Interest Rate', and the 'Duration' of the loan.
- You may choose to Lock your changes, so other users cannot change the parameters you have chosen.
- Click OK.