DCU to lend USD 100m for SunPower's solar loan scheme

Sep 30, 2013 -US firm SunPower Corp (NASDAQ:SPWR) said today that the Digital Federal Credit Union (DCU) would extend loans of as much as USD 100 million (EUR 74m) to help finance residential solar system installations.

Under its SunPower Loan scheme, the photovoltaics (PV) maker and solar installer allows homeowners to go solar at no upfront cost -- they just make monthly payments for solar electricity produced by systems installed on their property. In today’s statement the company explained that the collaboration with DCU will result in additional financing options to its customers.

As part of the deal, DCU will act as the lead originator for a tie-up of 36 credit unions that will back SunPower's residential solar loan offering. After joining DCU a homeowner will be able to apply for a loan of no more than USD 50,000, which may later be participated out to a credit union in the programme. A loan can be extended with a term of as many as 20 years. Once it is fully repaid, the homeowner will receive the solar electricity for free for the remaining life of the solar installation.

The solar loan programme is already available throughout the US. Total Gas & Power USA SAS, part of French energy group Total SA (EPA:FP), owns 65% of SunPower.

(USD 1 = EUR 0.741)

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