Solar Power Financing Options
Energy Efficiency Mortgages
Consider using a mortgage loan for the purchase and installation costs of a
solar photovoltaic or
solar hot water system to take full advantage of
federal tax deductions. Several energy efficiency mortgages
exist that apply to solar power systems. Ask your broker to provide you with information about FHA and/or VA energy
efficient mortgages to see if you qualify. Fannie Mae and the EPA through its ENERGY STAR program also offer home
loans. More and more financial institutions are also developing products that factor in the environment.
For example, Fannie Mae provides home loans for solar photovoltaic electricity systems and
solar water and space heating systems typically up to $15,000 with a 10-year term.
The US Environmental Protection Agency, through its ENERGY STAR program offers residents home loans for solar
photovoltaic and solar heating systems that exceed existing code energy efficiency standards by at least 30 percent.
The US Department of Energy publishes a consumer guide for financing solar energy systems
that describes the various resources available to finance residential solar power systems. To obtain a PDF version
of the guide go here.
Even if you can't obtain a renewable energy specific mortgage, you can often take
out a home equity loan. Remember, installing a solar energy system is comparable to any other upgrade you might do
to your home, such as installing a new deck or remodeling a kitchen.