Financing Residential Solar Power
Although competition is driving prices down, solar panel systems can require you departing with a chunk of change. Fortunately, the mortgage industry wants to talk to you.
Financing Residential Solar Power
If you are considering improving your home with a solar panel system or the hot new thin solar roofing systems, you need to learn three little letters – E…E…M. EEM stands for energy efficient mortgage. It also stands for avoiding out of pocket costs to improve your home with a solar.
Energy efficient mortgages came to be because of a nudge from the government to lenders in an effort to promote the use of solar energy as a power source. Put another way, the government told lenders to do it and do it now. So, what exactly is an energy efficient mortgage? Glad you asked.
An energy efficient mortgage is a loan that allows you to incorporate the cost of your solar improvements into your mortgage loan. The improvements can cost up to 15 percent of the total value of your home. The lender will calculate the energy savings for you home because of the new solar system and will add that to the total loan value, letting you borrow more than normal. Put another way, it doesn’t matter how much equity you currently have in your home, the solar financing is added on top of the loan. This, of course, lets you get a solar system without much out of pocket expense and you get to recover a good chunk of the cost through an increased mortgage interest deduction. Throw in tax credits, rebates and net metering incentives, and solar is getting mighty cheap if you know how to work the system.
Energy efficient mortgages have very few restrictions. You can get them for new construction or existing homes. The can be issued for single family residents, duplexes, condos and so on.
Frankly, it is a no brainer to go with an energy efficiency mortgage. Ask your lender for more information on the program so you can find out how to profit from a solar improvement to your home.
Frequently Asked Questions
-
QUESTION:
What are the current Federal incentives for residential solar power?
I'm looking at a start up specializing in installing PV solar systems. What are the current federal tax incentives for them.
I'm not looking for any political BS. I'm a Republican and am willing to invest my $$ in it. I think that makes me a believer.-
ANSWER:
Federal incentives for residential solar electric systems is 30% to a max of 00. Business incentives are 30% and from my understanding no top limit.Go to this site and click on your state. For all incentives avalable in your state. http://www.dsireusa.org
-
-
QUESTION:
How can i get the best residential solar power system possible?
Are there any premade systems or would i have to buy the individual componants separate to get the best system?-
ANSWER:
I recomend useing a Solar Panel - Hydrogen Fuel Cell hybrid. It doesn't have all the draw backs of batteries. The link below is just one I googled, there are many more. Remember batteries pollute more then a than the electric company's power generators. Hydrogen fuel cells also have the advantage of emitting pure drinking water as a byproduct. NASA uses fuel cells not only to power space craft but the provide a lightweight way to store water.
-
-
QUESTION:
where can i learn everything about actually making residential solar power?
are there websites? are there schools?-
ANSWER:
Try the source. It is a commercial source, so it isn't highly technical, but it should tell you what you need to know about real life solar power.
-
-
QUESTION:
Would you invest in a residential solar power system given today's economy? Why or Why not?-
ANSWER:
Okay, here's the thing.I would invest in solar panels if I had eliminated my extra electicity usage already.
It can be very expensive, and simply cutting your electricity use at home is usually more economical and a more logical first step.
unplug appliances when not in use
shut off lights (duh)
turn heat down
turn a/c up (warmer)
put systems on a power bar (television, computer) and shut down the bar
sweep instead of vacuum floors
shut off computer when not using itThe less you use, the less you have to pay for. The less has to be generated. Once you've done everything you can for power savings, then look into alternate production methods.
-
-
QUESTION:
Is residential solar power technology mature enough to purchase?
What is the likelihood that solar panel technology will improve drastically in the near future such that current solar panel technology will be completely obsolete before 10 years time?The reason for my question is as follows:
I'm thinking about buying 10kw microfit solar panels for my home, but they cost a whopping k+ Canadian dollars. If I connect to the power grid and sell back to the government, they pay me 80 cents per kwh, which means the system pays for itself after 10 years. I feel that 10 years before ROI is a long time unless advances in solar technology have tapered off, which means buying today's solar panels would cost the same as buying solar panels 10 years from now.-
ANSWER:
My friend installed 18 months ago a 7Kw (of 33 Sharp panels) system for K USD (K Canadian?). Don't feel bad about long payback. He is 68 and won't see the return, probably. And he is prevented from selling back power to the grid, as it is a corporation, not government owned. They don't want his excess power at any price. And even though he has minimal electric usage (nights and clouds), he is still charged the distribution fee and a minimum usage fee every month.
Future panel tech may lead to "printed" panels of exotic inks rather than "grown" crystal ones. That might cut the cost per Kw to 10% of today's.
-