Financing Solar Panels + Powerwalls

[dcorb9906]

I just received my system design for a 14.28 kW system with 2 Powerwalls. I am ready to go forward with the purchase. Cash is ideal but not an option for me. Tesla is offering a 10-year loan for 4.99% or a 20-year loan for 5.99%. Has anyone financed with someone else with a better rate?

Also, I thought I read somewhere that the sales tax is exempt for solar but mine is coming out to just under $2000 for a $45,000 purchase. Double-checking if this sounds about right for everyone here in California?

 

[jjrandorin]

"Tesla" doesnt do solar loans.... unless something has changed VERY recently. They forwarded you to one of the companies they forward people to, but the loan isnt through tesla itself. Who is it actually through? There are a few different companies that offer those solar loans.

Be aware that those loans assume you will receive the full tax credit, AND also assume that you will send the entire tax credit to them as an additional principle payment, to keep the same payment. They have a "starter" payment for like 18 months or something, and then the only way the rate stays the same is if you make an additional principle payment that is = to the prospective tax credit of your purchase. If you dont, the loan payment will increase.

 

[Electrph]

I have just past the point of going forward with purchase so slightly ahead of where you are now. @jjrandorin is spot on with the assumption that you will receive full rebate and apply that to your loan lest your monthly payments increase ( I believe Tesla lists amount that payment would increase.)
I was quoted exact same rates for 10 and 20 year loans. What I was not able to get were any fees associated with these loans. If you calculate out the payments there are clearly fees and/or something is being massaged with the compounding. In any event in my case the 20 year was much worse than the 10 in terms of actual amount paid. In my case financing $32,000 almost added if I recall over $20,000 to the cost after 20 years. The 10 year was much more reasonable. I don’t know if this was simply due to the nature of compounding over 20 vs 10 years or if additional upfront fees were in play. I believe as @jjrandorin stated Tesla is still using 3rd party financing and that is reason for lack of detail loan info.
I believe if you have good credit you can find outside financing on your own for slightly better rates or you can take out a home improvement refi on your home / possibly write off interest. (This would be “cash” option as far as Tesla is concerned). This has been discussed on other threads, some people are opposed to this for various reasons etc.
Personally I went “Cash” am hoping Tesla still allows PayPal or Plaid cc payment when payment due (after inspection approval) I will put about $20,000 on a 0% cc for the points and pay off within about 10 months.
oh and yes in CA you pay tax on all hardware but not on labor.
Sorry for long winded response I just passed this point so fresh in my mind.

 

[Kcarver]

I financed through Sun Financial 20 year for 4.99%. I plan to pay off in 10 but want to keep monthly payment same as my electric bill for now which the 20 year loan does for me. I looked for HELOC but rates were not any better. Think you would have to refinance whole house to get better.

 

[dcorb9906]

I have just past the point of going forward with purchase so slightly ahead of where you are now. @jjrandorin is spot on with the assumption that you will receive full rebate and apply that to your loan lest your monthly payments increase ( I believe Tesla lists amount that payment would increase.)
I was quoted exact same rates for 10 and 20 year loans. What I was not able to get were any fees associated with these loans. If you calculate out the payments there are clearly fees and/or something is being massaged with the compounding. In any event in my case the 20 year was much worse than the 10 in terms of actual amount paid. In my case financing $32,000 almost added if I recall over $20,000 to the cost after 20 years. The 10 year was much more reasonable. I don’t know if this was simply due to the nature of compounding over 20 vs 10 years or if additional upfront fees were in play. I believe as @jjrandorin stated Tesla is still using 3rd party financing and that is reason for lack of detail loan info.
I believe if you have good credit you can find outside financing on your own for slightly better rates or you can take out a home improvement refi on your home / possibly write off interest. (This would be “cash” option as far as Tesla is concerned). This has been discussed on other threads, some people are opposed to this for various reasons etc.
Personally I went “Cash” am hoping Tesla still allows PayPal or Plaid cc payment when payment due (after inspection approval) I will put about $20,000 on a 0% cc for the points and pay off within about 10 months.
oh and yes in CA you pay tax on all hardware but not on labor.
Sorry for long winded response I just passed this point so fresh in my mind.

Thank you this was very helpful!

 

[dcorb9906]

"Tesla" doesnt do solar loans.... unless something has changed VERY recently. They forwarded you to one of the companies they forward people to, but the loan isnt through tesla itself. Who is it actually through? There are a few different companies that offer those solar loans.

Be aware that those loans assume you will receive the full tax credit, AND also assume that you will send the entire tax credit to them as an additional principle payment, to keep the same payment. They have a "starter" payment for like 18 months or something, and then the only way the rate stays the same is if you make an additional principle payment that is = to the prospective tax credit of your purchase. If you dont, the loan payment will increase.

Good to know!

 

[dcorb9906]

I financed through Sun Financial 20 year for 4.99%. I plan to pay off in 10 but want to keep monthly payment same as my electric bill for now which the 20 year loan does for me. I looked for HELOC but rates were not any better. Think you would have to refinance whole house to get better.

Plan on doing the same. Thanks!

 

[holeydonut]

What state are you in? California residents can look into a personal “line of credit” from First Republic Bank. It’s 2.25% to 3.5% depending on your parameters. It’s interest only (no am-schedule) for the first 24 months draw period, and then flips to a fixed rate loan after the draw period.

No prepay penalty and you can pay down the line during the draw period. No lien or security on the loan either.

Just hit Google and search- I’m not doing this for any referral or anything.

 

[dcorb9906]

What state are you in? California residents can look into a personal “line of credit” from First Republic Bank. It’s 2.25% to 3.5% depending on your parameters. It’s interest only (no am-schedule) for the first 24 months draw period, and then flips to a fixed rate loan after the draw period.

No prepay penalty and you can pay down the line during the draw period. No lien or security on the loan either.

Just hit Google and search- I’m not doing this for any referral or anything.

I see the minimum is 60k to take out that type of loan and my system will be 33k. I will have to crunch some numbers and look more into it but thanks for the information as its good to have options!

 

[holeydonut]

I see the minimum is 60k to take out that type of loan and my system will be 33k. I will have to crunch some numbers and look more into it but thanks for the information as its good to have options!

The line minimum is $60k, you don’t need to take out $60k on day one. Interest is calculated only on the drawn amount.