Applicant Credit Review for Commercial Solar Loans
Once an applicant has been conditionally accepted into the program, PSE&G will evaluate the project from a credit perspective.
Here is what we look at:
- PSE&G will review financial documentation submitted during the solicitation process, including the last three years of financial statements.
- Applicants and host (if applicable) must be in good standing with respect to payment of PSE&G energy bills.
- PSE&G may request additional financial information on an as-needed basis, and applicants are required to respond within the time frame requested in order to maintain their conditional capacity award.
- If credit enhancements are determined to be necessary, the applicant may be required to provide a guaranty from a third party or other security which is acceptable to PSE&G.
- PSE&G will maintain a first-priority lien position on the solar equipment.
- For solar developers for residential-aggregated projects, PSE&G will maintain the right, but not the obligation, to enter into forbearance agreements under commercially reasonable terms with program applicants.
See Credit Requirements below for more detailed information.
Frequently Asked Questions
Credit Criteria to be used for Residential Customers in Lending Decision will include, but not necessarily be limited to the following:
i) All applicants must submit to a credit check.
ii) Residential customers who are salaried employees, on a fixed income, or have been self employed for more than two years must have an Experian FICO score of at least 680 at the time of application.
Residential customers, who have been self-employed for less than two years at the time of application, must have an Experian FICO score of at least 720 at the time of application. A score below 720 can be reviewed on a case by case basis and other mitigating factors may be considered.
If there is more than one applicant, at least one of the applicants must meet one of the above credit score criteria.
If the Experian credit report does not provide a FICO score, a Tri-merge report from Credco may be used. The Credco report scores will not be used in lieu of the Experian credit scores since they are not on an equivalent scale or meaning. The overall credit picture will be taken into account based on available credit reporting and the loan will be underwritten based upon the overall credit profile of the applicant. In certain cases, a single borrower may be required to add on a coapplicant.
Residential customers must be in good standing with respect to payment of PSE&G energy bills.
PSE&G, at its discretion, may accept the applicant subject to the requirement that the customer and/or host (as applicable) maintain energy payments in good standing for at least 6 months prior to closing.
iii) A financial review of the customer’s debt to income ratio will be conducted along with other financial analysis warranted by customer circumstances.
iv) PSE&G will maintain a lien on the solar equipment and will obtain a first priority lien position where appropriate. However, PSE&G is not required to obtain a first priority lien.
The customer must disclose the existence of any liens on the solar equipment or the property where the solar equipment will be installed. PSE&G will conduct a search for liens prior to closing.
v) No disputes in regards to ownership of the underlying property at the time of ownership. Property title must be free and clear at closing.
vi) No bankruptcy filing within the last seven years.
vii) PSE&G will maintain the right, but not the obligation, to enter into forbearance agreements under commercially reasonable terms and conditions with Program Applicants and their tax equity investors.
viii) At closing all residential customers must submit a signed affidavit stating that there has been no material adverse change in their financial status which could affect their ability to repay the loan.