ARVADA, Colo.-Sooper Credit Union's "solar garden" lending program has generated 42 loans for $670,000 in its first year-plus.
Darrell Mann, EVP for the $272-million CU, told Credit Union Journal Sooper has 10 pending solar garden loans that are approved and awaiting completion.
"It is not a bad start, we are very happy with the way it is working out," he said. "We would like to see a little bit more volume, but we understand it is a progression. A lot of people who invest into solar gardens pay cash. All the loans are performing and we have had no delinquencies."
When first reported in Credit Union Journal [Sooper Intro's Loan To Help Buy Into 'Solar Gardens' May 28, 2012], Sooper said it was the only credit union in the country to offer long-term loans to consumers and businesses to get involved in community-owned solar gardens. The loan program was the result of a partnership between Sooper CU and Carbondale, Colo.-based Clean Energy Collective. The company said its "community solar model" allows utility customers to obtain economies of scale through solar panel ownership in a community-based, utility-scale PV [photovoltaic] array.
Sooper CU said its members can buy a single panel in CEC's solar garden for as little as $535, or as many as needed to completely power their home or business. Its Clean Energy Loans are available as three-, five-, seven- and 10-year fixed-rate loans. Rates are as low as 2.25% for three-year loans and 5.5% for 10-year loans, with no prepayment penalties or fees. Home or building ownership is not required to participate.
Expansion Mode
When the program launched in April 2012 CEC served 16 Colorado communities, but had not yet tapped the Denver market. In the last two months, Mann said CEC won a contract to build in three areas in the Denver metro area-vastly expanding opportunities for the company and the credit union.
"One array is complete, one is near complete and the other might be done in a month," he said. "We will have an opportunity to get loans in each of those. As the solar gardens are being built the company offers them up to the public for pre-sale. We are the only option for financing."
Sooper remains the only solar garden lending option, but it actually is working to end that. Mann said there are other areas around the country where CEC is building solar gardens, so Sooper is referring that business to local credit unions.
"We expect this to be a good product going forward," he said. "It is not the biggest product we have but it is a diverse thing we can do that is part of being green. It is good for the world."
