Sales 1 - HDM Overview and Expectations
HDM Sales - Overview and Expectations
HDM Sales 1 - Overview
Future lessons will cover important points in detail. Let’s start with the big picture.
HDM Background
HDM is owned and operated by successful solar industry pioneers, leaders, and veterans who have invested and managed >$3B in residential solar assets, including creating and selling the first residential solar PPA and Prepaid PPA.
The HDM
principals have developed more than half of all distributed solar systems in
the US.
HDM Renewable Finance launched in 2018. It is profitable, has no debt and has 100’s of millions in financing available.
As an HDM partner, both as an individual and organization, you are expected to:
Operate with honesty and integrity:
HDM expects its solar partners to honestly describe the HDM product and its benefits to customers, and not to make false promises or false statements about the federal tax credit or the HDM Prepaid PPA.
Understand the product:
The details of the HDM product and how to communicate its benefits and features are described in this training and in the HDM agreement.
Follow the HDM process:
Enter only accurate information to the quotes form (when creating docs). Avoid making assumptions. Inconsistencies in the form data will result in re-signing the customer later. During the underwriting process upload all required docs in the appropriate stages.
HDM offers a Prepaid PPA.
A Power Purchase Agreement is simply an agreement to buy power. A Prepaid is an agreement to buy 20-years’ worth of power upfront with one payment.
HDM monetizes the ITC for the property owner today.
HDM pays out the following on solar projects:
- Standard pricing: 15%
- Project qualifies for EC: 20%
- Project qualifies for DC: 20% (coming soon)
- Project qualifies for EC + DC: 25% (coming soon)
Every HDM deal also includes:
Production Guarantee
System Monitoring
Insurance
Homeowners have the option to take possession of the system after 6 years.
The Advantages of an HDM Prepaid
HDM has NO FICO requirements and it’s EASY to assign to a new homeowner
Customers see an upfront discount instead of a tax credit several months in the future. The federal tax credit for home solar is complicated and many solar customers fail to take advantage of it.
HDM reduces the cost of solar by 15-25% for everyone at signing.
HDM partners can offer homeowners a predictable fixed payment while beating the competition who sell with conventional solar loans or PPAs with escalators.
Customers save money now instead of waiting for a tax credit down the road. They also save by making lower payments on a smaller loan amount.
Energy Communities
The energy community tax credit bonus applies to certain geographic locations throughout the US. Homeowners in those communities have 20% of their solar installation covered by HDM when they sign a prepaid PPA. Customers located outside of energy communities have 15% of their cost covered.
HDM Project Cycle
A Homeowner signs the Prepaid agreement and is responsible for 75-85% of the price.
Installer provides utility and permit docs and completes the installation.
HDM sells the deal to an investor and the system is energized.
Monitoring is shared and HDM reviews system production.
HDM funds 15-25%*
of the system price.
*Energy community example
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