Simple Amortizing Loans are one of two basic types of solar loans offered by Atmos. The other type is called a Tax-Advantaged Loan. More information on Tax-Advantaged Loans can be found here and a comparison of these basic loan types can be found here.
Simple Amortizing Loans begin with a 6 month no-payment period. The no-payment period is included to prevent a borrower from paying both an electricity bill and a loan payment while a project is being installed. The no-payment period provides borrowers and their installation partners with ample time to permit, construct and complete a project, but extensions may be available if a project is unavoidably delayed.
During the no-payment period, interest accrues as principal is drawn down to pay for the work performed. All interest accrued during the no-payment period is added to the principal balance (this is known as capitalized interest), which is then amortized over the chosen loan term as a standard installment loan. Typical of standard installment loans, the minimum monthly payment does not go up during the loan term.
As with all of our solar loans, Borrowers may reduce their minimum monthly payment by making a prepayment of $500 or less at any time. Prepayments are fee-free. Prepayments greater than $500 will trigger your loan to re-amortize over the remaining term. (Note: To remove the impact of any capitalized interest, a borrower can make a prepayment of $500 or more immediately following the no-payment period.)
Though Tax-Advantaged Loans provide borrowers with 30% of their project cost interest-free for 18 months, Tax-Advantaged Loans also include the potential for minimum loan payments to increase significantly if the amount of the ITC is not used to pay down the loan. Simple Amortizing Loans do not have this risk.
A Simple Amortizing Loan from Atmos is great for borrowers that:
- Are on a fixed income
- Don’t have an ongoing federal tax-liability
- May use the ITC to pay down the loan, but wants to lock in a monthly payment amount without risk of a step-up payment
Both Tax-Advantaged Loans and Simple Amortizing Loans are excellent options to electrify your home and gain energy independence. Be informed and choose the right loan product for you. To get more information, please contact loan_servicing@joinatmos.com.
Please note: Atmos is not a tax consultant and does not provide tax advice. To understand the implications of the ITC for your situation or for other tax-related questions, please consult a tax advisor.