When Do Residential Solar Loan Payments Begin?
For residential solar loans, the first payment does not begin immediately after installation. Instead, the payment timeline is based on the Notice to Proceed (NTP) date.
What is Notice to Proceed (NTP)?
Notice to Proceed (NTP) is the official authorization issued by the bank that allows the installer to begin work on a solar project.
NTP is issued after the loan has been booked, which means the bank has completed its review of the following:
The customer’s loan application
The solar contract
Required project documentation
Borrower eligibility and lending criteria
Once this review is complete and the loan is approved, the bank issues NTP. This serves as the green light for the installer to begin the project, including permitting, equipment ordering, and scheduling installation.
When Do Payments Start?
Residential solar loans include a 6-month no-payment period that begins from the NTP date.
This means the 6-month payment deferral starts when NTP is issued, not when the system is installed or when the project is completed.
Important Clarification
It is important to understand that:
Payments do not begin at installation
Payments do not begin when the system is turned on
Payments begin 6 months after the NTP date