SolarCity loan deal can propel rooftop market

SolarCity will begin offering loans to homeowners for solar systems, a move that industry analysts say could reshape the market for rooftop solar and propel its rapid adoption. Most current rooftop solar deals in US involve a lease or an agreement to buy power over a period of time, but the company owns the panels. SolarCity’s loan will allow customers to own their systems and still pay less for electricity, a simpler and cheaper prospect. ‘The value proposition is becoming clearer and less complicated for consumers,’ says Patrick Jobin, an analyst at Credit Suisse. ‘Solar is going mainstream.’ Other solar companies have begun to offer loans in recent months, but SolarCity Corp. is the nation's biggest installer, and its loan has a twist that may convince reluctant customers to sign up: The customer pays the loan back based only on the electricity that the panels produce. The growth of rooftop solar has been propelled by financing schemes that allow customers to have solar panels installed for little or no money down. The solar company installs the system, and customers either lease it or enter an agreement to pay for the power over a 20-year period. The combined price that customers pay to the solar company and the electric utility is less than what the customer paid for power without solar panels, according to AP.