Loans are a popular mechanism for financing solar projects. Solar financing companies such as Sungage Financial, Dividend Solar, Green Sky, Loan Pal, MOSAIC, Admirals Bank and Enerbank all offer various loan packages.In a regular loan the homeowner pays none or only a portion of the cost of her project up front (the down payment) and then pays the lender a fixed amount every month. The fixed payment includes principal and interest - similar to a mortgage. Here is how to model a regular loan:
- Go to your account Database tab at the top left of your screen while in the Aurora application.
- Locate the Financing Products to the left side of the screen.
3. Click on the Add Financing Product button at the top right corner of your screen.
4. When the New Financing Product box appears type in the name of the Loan that you want to create. Click the Create button to continue.
5. Once you create, you will see a new page that shows the following:
*Select the green Edit button next to your loan name to set you main parameters for your loan, here you will be able to choose & edit the name of loan, choose project type for which this loan is to be used for Residential or Commercial , and finally be able to choose the Financing type. Here we want to make sure that the financing type we choose is Loan. Then click Save!
6. Next Click the green Add Loan button on the screen.
7. Once the Add Loan box pops up on screen go through and fill in the fields that apply to your loan here on screen:
a. Name - Loan name
b. Principal - The percentage from 1-100% for which the total project cost the loan is intended to cover. For example if all project cost is to be financed then enter 100.
c. Dealer Fee - This applies to your personal Dealer Fee that you are charged to offer this finance option to your customers.
d. Add Dealer Fee to System Cost? - This is an optional field to where you can check this box to have the dealer fee cost included in the total Loan Principal amount.
e. Interest is Tax Deductible? - This is where if the loan interest is tax deductible.
f. Loan Type - Select Mortgage Style
g. Interest Rate - The interest rate determined by the financial provider who is funding the loan goes here.
h. Duration - Length of the loan term in months, for example if it’s a 20 year loan then the total number of months is 240 (12 months/ year x times 20 years) for the duration.
i. Then click the OK button
*Optional press the Lock button if you prefer to have this Loan lock so that no other users on your account can modify the financial parameters on this Loan you create by clicking the Lock button at the bottom left of the Loan box. 8. Finally make sure the loan that you have chosen is under your saved list of Financing Products, and you are all done with creating your standard Mortgage style loan for your Financing Product to use for your projects.