Last month we introduced MyPower, an exciting new financing option that combines the low upfront cost and utility savings of a power purchase agreement (PPA) with the benefits of ownership. The first-of-its-kind option received national media attention. We've received some great questions about how the loan product works and why we introduced it, and we've answered some of the most common below.

1) Why is SolarCity launching a loan product?

Six and a half years ago, we introduced a way for homeowners to pay less for solar electricity than they pay for electricity from utilities. Now, we are lowering the cost of solar electricity even further by leveraging our scale and low cost of capital to act as a direct lender to our customers and enabling them to own their system from day one, while still using our full-service approach.

We have talked to many potential customers over the years that would prefer to own their system but also wanted to immediately pay less for electricity. Now they have an affordable option to enjoy the benefits of ownership with none of the hassle - MyPower customers will receive a 30-year warranty, production guarantee and monitoring service package.

2) Does this mean the Solar Lease and the PPA are going away?

No. MyPower will lower the effective cost of solar power for many customers and we expect it to be extremely popular, but we will continue to offer our Lease and PPA products and we expect those options to continue to be popular as well. If a customer does not have the tax liability to take advantage of the 30% Solar Investment Tax Credit, or if they prefer to make a fixed payment every month, a lease or PPA can be a better option than a loan. We will provide customers a range of options to find the one that best fits their situation. 

3) If someone decides to pay the loan off early (say 10 years in) do they still get the 30-year production guarantee, warranty and monitoring package?

Absolutely. MyPower is the most flexible solar loan product on the market. Customers are welcome to pay back their loan any time after installation and have the ability to apply these payments to lower their effective solar electricity rate or pay off their loan early. If the customer pays off their loan in full after 10 years, they will still be covered by the industry's best service package for the remainder of the 30 years.

4)  I'd love a little more information on the mechanics of how the loan works. Ultimately there's a fixed loan amount that has to be repaid. How does energy production factor into repayment?

What makes MyPower so unique is that it is the only solar loan product on the market that is paid back based on how much electricity the system produces. This means that if the system produces more than anticipated over the life of the loan, the customer will be able to pay off the loan faster. We provide a 30-year production guarantee-if the system underperforms, we compensate the customer for the difference on a bi-annual basis.

Payments will fluctuate depending on the number of kilowatt-hours the customer's system produces in any given month, similar to our PPA.

5) What happens if I want to sell my home?

Customers have three options if they want to sell a home with a MyPower solar loan agreement::

1) Transfer the loan to the new homeowner along with the system and warranty.

2) Pay off the loan in full and build the value of the system into the sales price of the home (e.g., "This home comes with free clean electricity!"). SolarCity will continue to provide warranty and system coverage for the new homeowner throughout the lifetime of the agreement. (This is essentially what customers who purchase their systems upfront do).

3) If the customer would like to move their system to their new home within the same utility district and the utility allows it, the customer can pay SolarCity to relocate the system. 

If you have additional questions about this product, please share below or email socialmedia@solarcity.com

Homeowners interested in learning more about MyPower can contact us directly at 1-888-SOL-CITY (1-888-765-2489) for a free, no-obligation solar consultation or visit usonline .

distributed by