HDM

Summary

HDM offers a prepaid PPA/lease structure that can be paired with approved loan financirs. Customers apply with Credit Human, and with a simple HDM amendment the financing converts to a prepaid PPA where HDM becomes a co-owner for six years to monetize tax incentives. The homeowner’s monthly Credit Human payment remains unchanged. After six years, ownership transfers back to the homeowner and HDM support covers warranties during the term.[1]

Key benefits

• Stacks with Credit Human approval and workflow
• Unlocks tax incentive value via HDM’s six‑year co‑ownership window
• Added warranty and production support during the HDM term
• Useful when the homeowner cannot claim residential tax credits directly[1][2]

Current rollout notes

• Enabled specifically with Credit Human. Other lenders may conflict due to UCC1 filings; Credit Human allows the HDM connection.[3]
• Internal naming in Job Flow should identify Credit Human as financier and label the offer as "HDM bundle" to route correctly.[4][5]
• Active through at least 2028 per team expectation and now live in Arizona (first deployment for HDM in the state).[1]

How it works

• Credit Human loan + HDM amendment converts to a prepaid PPA.
• HDM becomes co‑owner for six years to take federal tax credit and depreciation. After six years, title reverts to the customer automatically.[1]
• Customer signs an HDM packet in addition to the Credit Human documents. Internal teams are finalizing exactly what the customer signs and what reps can select in the HDM portal.[3]

Money flow and pricing model

• Example discussed: contract value calculated from system size times an HDM pricing index, then discounted ~20% for prepaid amount reference in conversations. Exact customer‑facing docs and visibility in the HDM portal are limited today.[3]
• Reps should not change Contract Price fields manually in Job Flow. Contract value is computed from quote and adders.[2]
• Commissions: A separate HDM payment to Empower is distributed via payroll. Confirm current spiff structure before quoting.[6]

Sales positioning

Use cases

• Homeowners who cannot efficiently use the residential ITC themselves
• Deals where monthly payment parity with loan options is key, but unlocking tax benefit via third‑party ownership improves affordability[1][7]

Talking points

• No new install agreement required beyond the HDM amendment. Payments continue with Credit Human, not HDM.[1]
• No monthly solar bill under prepaid PPA structure, with production guarantees and warranty support via HDM during the six‑year term. Ownership reverts after term.[7][8]

Operational guidance

• Funding partner: set to Credit Human
• Offer/type label: include "HDM bundle" taxonomy for routing and reporting[4][5]
• Provide Credit Human application link in the Funding Partner tab so reps can originate correctly[9][3]
• Expect HDM UCC1; Credit Human permits dual structure. Other lenders may not.[3]

Open items and known gaps

• Exact customer‑signed HDM documents and what reps can choose in the portal need confirmation and visibility in the knowledge base.[3]
• Ensure Job Flow fields support both financier and bundled offer labels consistently across teams.[5]

FAQs

Q: Does this change the customer’s Credit Human monthly payment?

• A: No. Payment remains with Credit Human and does not change due to the HDM amendment.[1]

Q: Who takes the tax credit?

• A: HDM as co‑owner takes the tax credit and depreciation over six years, then ownership reverts to the customer.[1]

Q: Can we pair HDM with lenders besides Credit Human?

• A: Not generally. UCC1 conflicts block most pairings. Credit Human is explicitly allowed.[3]

Q: What’s the expected timeline for availability?

• A: Team guidance suggests availability into 2027 and live in AZ now.[1]

References

Internal meetings this week and last week

• Oct 16 notes discussing structure, UCC1, and pricing illustration[3]
• Oct 15 and related ops notes on labeling and routing in Job Flow[4][5]
• Oct 6 leadership call covering AZ launch, six‑year term, and rep spiffs[1]
• Additional mentions across recent meetings[10][6]

External primers

• HDM prepaid PPA explainer and comparisons to traditional leases/PPAs[7][8]
• General PPA vs lease explainers for rep education[11][12]

Approved Structures:

• Double wides with permanent foundation and permanent affix.