ARVADA, Colo.-While many credit unions offer loans on roof-top solar systems, $259-million Sooper CU says it is the first in the country to offer long-term loans to consumers and businesses to help them into community-owned "solar gardens."
The loan program is the result of a recently formed 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 to consumers and businesses that purchase panels in any of CEC's community solar arrays, including those in Holy Cross Energy, Colorado Springs Utilities, San Miguel Power Association and Poudre Valley Rural Electric Association service areas. This includes 16 Colorado communities.
The CU is offering 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.
The Clean Energy Loan Program launched in late April. Darrell Mann, EVP for Sooper CU who oversees lending, marketing and operations, told Credit Union Journal the first loan closed on May 16, with five more "in the hopper" at press time.
"Four of those are approved and one needs additional information," he said. "We are hoping this will be a big product for us. We are appealing to utility users in all of those areas. It is not available in Denver yet, but we are in process of bidding with the utility that serves Denver."
SCU has an advantage, Mann added, in that the people of Colorado are very supportive of clean energy projects.
The CU recently kicked off marketing the Clean Energy Loans to its membership and potential members in areas where Clean Energy Collective has arrays. CEC gave the credit union a list of contacts, and CEC will send direct mail marketing pieces promoting its services and its financing partnership with SCU.
Efficient Energy
According to CEC, community solar gardens are more efficient and produce more power than rooftop systems, installation and maintenance costs are less expensive, and purchasers receive rebates and tax incentives up front.
CEC's solar garden model was recently acknowledged with the Solar Energy Industry Association's 2012 Project of Distinction Award, the Department of Energy selected CEC for the 2011 "National Innovative Green Power Program of the Year" award, and Climate Change Business Journal also recognized it with an award.
