This past Wednesday (10/9), 30 leaders from the solar industry descended upon Washington to attend an invite-only meeting convened by the White House on “Increasing Capital Flows into the Solar Market.” It was a fascinating conversation, led by the President’s Counselor, John Podesta. Out of respect for the intimate nature of the dialogue, we won’t attribute statements to individuals, although we are glad to share some overall observations.
We followed with great interest this week as SolarCity unveiled their MyPower residential loan product. Many articles have already covered some of the unique aspects of the loan, including that it is available to customers with a 680+ FICO and comes with a 30-year warranty, production guarantee, and monitoring service package. While we don’t yet know the particulars of exactly how the loan is structured, we think the structure raises a few interesting topics. We discuss below those elements that we have not yet seen covered by other articles. In particular, we think the loan highlights a central thesis held by our firm: the likelihood of customer payment in any solar financial product is a function of both credit risk and technical risk.