Lightreach, a home electrification financing platform, has launched a consumer focused Home Efficiency Plan (HEP) to support the adoption of energy efficient HVAC systems. Homeowners signing up for a Home Efficiency Plan, can expect a straightforward process and consistency in their experience. When selling a Home Efficiency Plan, here are the top 5 items for your homeowners to expect.
1) Qualifying
650 FICO credit requirement (Highest Score: TransUnion and Equifax)
No Debt-to-Income ratio required
Homeowner must be on title
2) Homeowner Web Portal Account
Instant sign up at point of sale
Instant upload and fulfillment of Notice to Proceed (NTP) requirements
Homeowner portal link: https://home.palmetto.com/
3) Signing & Fulfilling Requirements
Home Efficiency Plan contract sent via Docusign (or Web Portal Account)
Notice to Proceed requirements fulfilled via web portal account
ACH banking information is required on all sales- Setting up ACH autopay is mandatory for all customers and serves as a prerequisite for receiving the installation Notice to Proceed (NTP) status.
4) Maintenance Program
Maintenance Program: 10-year coverage included
Warranty: 10-year parts and Labor warranty included
5) Billing
30 Day billing cycles
First Payment Expectations: First payment due 30 days after the system is Installed.
Billing details available via homeowner's portal
Credit Requirements
Item | Requirement |
Credit Requirements |
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There are four key items required to proceed with a credit check and standard underwriting requirements. These are referred to as the Qualification.
Customer info
System Design
Quote
Credit Check
Once the Qualification details are input into the portal, users can proceed with the other standard NTP requirements.An essential component of the NTP requirements is enrolling in ACH autopay, which is mandatory for moving forward with any project. Below are our credit parameters and other key details about the equipment lease that Certified Installers should know.
There are four basic steps to qualifying a homeowner and completing a new sale.
Homeowner and system information is input (via palmetto.finance)
Qualifying via credit check
Homeowner Web Portal Account Invite + Contract Docusign are sent
Documents signed & stipulations cleared
All homeowners must create an account in order to clear stipulations
Click Here for a Step by Step guide
Click Here for a Step by Step guide
1. Create the customers account
2. Ensure Customer and Property Info is correct
3. Go to the System Design tab and enter the system details
4. Ensure the System Design details and pricing are accurate + Click Save & Get Pricing
5. Run Credit: Click "+ Application" and submit application
Last 4 digits of SSN required, full social recommended for best results. Some applications may not return a result without full social.
Note that ITINs are not accepted in place of social and may result in an error.
Double check homeowner email for accuracy
Allow homeowner to review and affirm the disclosure
Run a credit check or send the credit application to the homeowner
Maximum credit check rate limit of 6 on all accounts
*Credit applications can be emailed to the customer directly.
6. When ready, SEND the Contract
Contracts are sent to the homeowner's email via docusign
Docusign subject (may vary): "Power Purchase Agreement - XYState"
Alternate signing option: Homeowners can sign the contract within their online account.
7. Simultaneously, the homeowner is sent an ACCOUNT/APP Login Prompt via Email
All homeowners must create an account in order to clear stipulations
Homeowner portal link: https://home.palmetto.com/.
Account is accessible via web browser, mobile browser, or mobile app
Instant Account Setup via Email Invite. Subject Line: "Welcome to LightReach!"
8. Homeowner clears stipulations
Stipulations are cleared fastest when the homeowner completes them via their account. Steps can be found here.
3 | What happens after the initial 10-year term? | After the initial 10-year lease, the customer has the following options:
At the end of the lease, customer can:
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4 | Is the homeowner eligible for Inflation Reduction Act (IRA) Tax Credits? | Federal tax incentives are currently not eligible for homeowners that choose to lease HVAC equipment. |
5 | What happens after a lease renewal? | Following any renewal period the customer may elect to enter into a new lease agreement for new replacement equipment. In the event they enter into a new lease agreement, the customer will not pay any equipment retrieval fee on the Equipment, and LightReach will provide a credit (to be applied to Monthly Payments under the new lease agreement) in the amount of 25% of total monthly payments made for each annual renewal term following the initial term note. |
6 | Is the homeowner eligible to apply and receive local/state/utility rebates or incentives? | Yes, the dealer can price or discount for these or the homeowner or dealer may pursue any local rebates or incentives outside of the lease agreement. |
7 | What happens if payment is late? | If payment is late for any reason, homeowners are given sensible leeway to re-link payment and bring their account up to date. |
7 | Does the Lease payment appear on the homeowner's credit? | No, the LightReach product does not report as a debt. There is no consequence to simply seeing if a homeowner is qualified. |
8 | Alternatives to ACH? | ACH is an NTP requirement for all customers. No other payment setup methods are accepted at this time.
In the event of extenuating circumstances, LightReach will reasonably work with a homeowner in the event that ACH payment is not possible after activation. However, customers will need to contact our CX teams directly, after activation. This should not be set as an expectation for new homeowners. |