Solar Energy: Butterfield To Offer Financing
Local company Alternative Energy Systems (AES) today announces it has partnered with The Bank of N.T. Butterfield & Son Limited to offer the island’s first financing deal for customers in Bermuda who wish to install a SunPower photovoltaic (PV) solar energy system at their homes or businesses.
For Butterfield mortgage customers, the loan will be added to the mortgage payment and amortized out with their current mortgage, up to a maximum of 25 years. The rate of the loan will match the rate of the mortgage.
For non-Butterfield mortgage and commercial customers, a loan can be arranged through the Bank’s lending department. The average cost for a 5 kilowatt solar energy system will be approximately $40,000.
“I’m elated to be announcing this partnership,” says AES founder and Chief Executive Officer, Tim Madeiros. “I believe that the offer with Butterfield will allow a greater number of Bermudians to participate in renewable energy at no additional cost.”
“Home and business owners can now pay off a loan to eventually own their energy and significantly reduce or completely eliminate their electricity bill. I would like to thank Butterfield for taking a bold step forward in being the first financial institution on the island to offer financing for AES customers.”
Sean Lee, Executive Vice President, Head of Retail Banking, Butterfield, says: “We’re delighted to have developed the island’s first financing option for photovoltaic solar energy systems. As the needs and cost for energy continue to grow, we believe this financing option will allow many Bermudians to create their own alternative energy in a difficult economy with no financial outlay.”
“We have structured the loan so that, generally, customers will pay no more than they currently do for their electricity each month. We believe this is a win-win for Bermudians and we’re pleased to be partnering exclusively with AES on this initiative.”
Walter Roban, Minister of Environment, Planning & Infrastructure Strategy, says: “We encourage any development that can reduce our reliance on fossil fuels. Solar photovoltaic technology is one of the simplest forms of renewable energy available to Bermuda.”
“We embrace financial incentives that provide reasonable returns on investment for energy efficiency and renewable energy projects and applaud AES and Butterfield for coming together on this deal.”
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Nice offer if it is not insidiously tied to requiring first mortgage terms, and of course it only applies to AES, no other vendors.
I tried to access BNTB historic house renovation financing and quickly learned that if your primary financing is with the other banks, the gesture is completely meaningless…..
SK – as per the article “For non-Butterfield mortgage and commercial customers, a loan can be arranged through the Bank’s lending department”, so you can see that its not tied to first mortgages. And I’m sure AES has been selected by the bank because if their extensive knowledge and experience. They have installed over 150kW of solar in Bermuda and they are also authorized dealers for SunPower which manufactures the most powerful and efficient solar panels in the world. It just makes sense.
If i have to take out a loan to get solar power and 5kilowatts system is going to cost me about 40,000 and i use about 400 that means to get a system that covers at least half my usage is going to cost me over 3million. I do take into consideration that obviously it recharges day to day but on an emerge day im going to use about 12Kilowatts so i need at least a 15kilowatt system taking into account that it may be a storm and i may not see the sun for three days. so i have to get a loan for about 120,000 and by time you add on the interest you will pay about 200,000 if not more. so your mortgage payments are going to be as much as a light bill time you calculate your interest and all that stuff. I would rather jus pay a light bill. at least in today economy i fi lose my job or get a pay cut or even die i won’t owe the bank any money.
Not to mention if one of them get damaged you gotta pay to get a new one.