Months 0 - 6: Regardless of which term you pick, all Atmos Solar Loans get the benefit of no payments for 6 months. This initial no-payment period is intended to give you and your installation company time to install your new residential energy system and start generating cheap, renewable energy before your loan bills kick in. Interest may accrue on your loan during this no-payment period based on milestone payments to the installation company. Any and all accrued interest is capitalized (added onto the principal) and amortized over the term of the loan you select.
Months 7 - 18: Following the no-payment period, you'll get the benefit of reduced payments for 12 more months. The reduced payment is based on an introductory 0% APR for the entirety of your investment tax credit (ITC), offered through month 18 of your loan. On a federal level, this is equal to 30% of your total project cost (including any financing fees), but if you live in a state that has additional state-level tax incentives, you'll get an even greater benefit.
Months 19+: Atmos will automatically re-amortize the outstanding principal balance of your loan after month 18 using the stated, fixed interest rate shown on your loan agreement. This 18-month period gives most customers plenty of time to receive the benefit of the tax credit and pay down the ITC portion of their solar loan if they choose. There is no obligation to pay down the solar loan. However, customers can expect their monthly loan payment to go up if they don't pay down their solar loan by the amount of the ITC. To maintain the same monthly payment, customers should pay down their solar loan by the amount of the investment tax credit assessed on their loan. Please consult with a tax professional to understand if you can take advantage of the ITC to maintain those low monthly payments.
Following the introductory 18-month period, Atmos will re-amortize your loan over the remaining term with any prepayment amount of $500 or more. This enables you to reduce your monthly loan payments as you have disposable income to pay down your loan. There are no fees or penalties for prepaying your loan and no limitations on the number of times you can prepay or re-amortize your loan. Prepaying your loan in any amount will reduce the interest expense you'll pay over the life of the loan. Good for you, good for us.