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How does the HDM PPA work?
How does the HDM PPA work?
For access to HDM please contact support@initiatesolar.com
Portal link: https://hdmcadmin1.zohocreatorportal.com
For access to HDM please contact support@initiatesolar.com
Portal link: https://hdmcadmin1.zohocreatorportal.com
This option is for homeowners that do not qualify to take advantage of the Solar Tax Credit but qualify for Solar Financing:
1. **Example System**: - A 10-kilowatt solar system is sold at $50,000. This price includes all dealer fees. - It's financed over a 25-year loan with a 4.99% dealer fee. - If customers opt for this loan, they would be paying $288 monthly for their solar. - The $288 payment assumes customers won't use their tax credit to offset the loan. - About 80-90% of customers do not apply the tax credit by the 18th month, which could lead to an increased payment after that period.
2. **Financing with HDM Product**: - This product offers homeowners the opportunity to claim a tax credit immediately rather than waiting for 18 months or potentially never receiving it due to their financial situation. - A 20% discount is applied to the total system cost, reducing the amount from $50,000 to $40,000. - The homeowner signs a contract and secures financing for only $40,000. - HDM will pay the difference of $10,000 so that they still get the full price of the system. - The contract and financing agreement shown to the homeowner will only state $40,000. This is true regardless of the financing provider they choose. - The homeowner's payment for the first 18 months would be $161. After 18 months, the payment would rise to $222. This results in a savings of $66 per month compared to the original financing plan and an even larger savings of around $120 in the initial 18 months.
3. **Objective**: - The goal is to offer a more attractive financing option for homeowners by leveraging the tax credit, ensuring a lower monthly payment especially during the first 18 months.
- Build out your system as normal, set your pricing in your solo platform as normal.
Example of a project with HDM
Example of a project with HDM
1. **Example System**: - A 10-kilowatt solar system is sold at $50,000. This price includes all dealer fees. - It's financed over a 25-year loan with a 4.99% dealer fee. - If customers opt for this loan, they would be paying $288 monthly for their solar. - The $288 payment assumes customers won't use their tax credit to offset the loan. - About 80-90% of customers do not apply the tax credit by the 18th month, which could lead to an increased payment after that period.
2. **Financing with HDM Product**: - This product offers homeowners the opportunity to claim a tax credit immediately rather than waiting for 18 months or potentially never receiving it due to their financial situation. - A 20% discount is applied to the total system cost, reducing the amount from $50,000 to $40,000. - The homeowner signs a contract and secures financing for only $40,000. - HDM will pay the difference of $10,000 so that they still get the full price of the system. - The contract and financing agreement shown to the homeowner will only state $40,000. This is true regardless of the financing provider they choose. - The homeowner's payment for the first 18 months would be $161. After 18 months, the payment would rise to $222. This results in a savings of $66 per month compared to the original financing plan and an even larger savings of around $120 in the initial 18 months.
3. **Objective**: - The goal is to offer a more attractive financing option for homeowners by leveraging the tax credit, ensuring a lower monthly payment especially during the first 18 months.
Video of how to create an HDM document
Video of how to create an HDM document
A few key aspects to know:
A few key aspects to know:
Make sure the address is verified
If the system has a battery, change the project type
All prices should be the TURNKEY price. We do the math for you
After everything entered, click save
On the main screen, scroll to the right to the Sign button. You get emailed the PPA first
When you initial and click finalize, the homeowner is emailed the PPA to sign
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