2A. Credit Review: Approval Guidelines

Credit Criteria	650 Credit Score Soft credit inquiry (no impact on homeowner credit score) No bankruptcies or late mortgage payments (7-Year Lookback) Debt-to-Income (DTI) Not Considered
Credit Verification	Credit is valid for 180 days from the initial credit check. Once the contract is signed, the credit remains valid. However, Skylight Lending reserves the right to cancel files if installation is not completed within a prolonged period (typically 160 days or more). This policy is rarely enforced unless there are exceptional circumstances with the Certified Installer. A client is allowed a maximum of three active applications at any given time.
Credit Application Standards	Full Name & Basic Contact Information Last 4 digits of SSN Required, success rate (90%) Use full SSN to maximize success rate (99%) Maximum credit check rate limit of 6 on all accounts
Contract Signing Conditions	An email account Contract fully signed & executed in correct, full legal name ACH payment is inputted by the homeowner in the Lease Agreement. (Payment sign up via homeowner portal, either through the app or web dashboard.)

Approved Property Classes

In general: Single family, fully-owned homes (residential). This is inclusive of: Primary residence Secondary residence Investment/rental properties (No more than 3 active applications per client at any given time) Multi Family (must be fully owned) C-Corp / S-Corp acceptable, but corp. officer must reside at property and be signatory on contract (other docs may be required) Trusts and LLC acceptable if homeowner on title is also a trustee or the controlling member.

Are all states a PPA?	Skylight Lending  current product suite operates virtually identically, whether it is technically a PPA or Lease. This means that the value proposition and product details are interchangeable. For legal/technical purposes, the product is technically classified as a lease in some states. View applicable states in the "Active Utilities" article in this help center. For practical purposes, the distinction between our PPA and Lease are for state legal purposes. A PPA signifies "pay for power" whereas a Lease signifies "pay for use of equipment". Ostensible, the products amount to the same mathematics, value proposition. The only difference that may be worthy of note is how the escalator technically works: PPA: Escalator based on the kWh rate Lease: Escalator based on the total cost for the lease.
Skylight Lending's Right to Cancel Orders	Skylight Lending reserves the right to cancel files that do not result in installation after an extended period, typically 160 days or more. However, this policy is not actively enforced unless there are exceptional circumstances involving the Certified Developer (see reference 6.1.5). Internally, this is related to our capital providers and funding allocation limits. When a contract is signed, capital is allocated. For instance, if a non-performing Certified Developer signs 100 customers and no installations are completed after 200 days, this could prevent us from redirecting those loan funds to valid transactions. While such scenarios are rare and would generally be addressed at the portfolio level, it’s important for those working with Certified Developers to understand this consideration regarding credit validity.
Can a homeowner have multiple accounts or sites?	Yes, a homeowner can have up to 3 active applications. However, each account must have a unique email address. Each site is treated as a separate project, and duplicate email addresses are not allowed.
What is the process for checking a homeowner's credit?	We evaluate both Experian and Equifax. The customer must be approved by one of the two bureaus.
The homeowner has a credit freeze in place.	If a homeowner has frozen their credit reports, they must unfreeze them with the credit bureau(s) in order to move forward. Homeowners can visit these sites for further instructions and then submit a new credit application: https://www.experian.com/freeze/center.html
Difference Between a Soft Credit Check and a Hard Credit Check.	A soft credit check is part of all energy plans, ensuring that the homeowner’s credit score isn't impacted. Furthermore, the PPA is not considered debt, so there are no consequences for determining if a homeowner qualifies.
Can co-borrowers be included?	Co-coborrowers are permitted; please see article 2B in this sales section for more details.