Solar Energy Financing
There are a lot of solar financing programs out there. Each one benefits a particular homeowner differently. Solarponics will help you understand, apply for, and manage the solar energy financing process to get the most out of your energy investment.
Below you will find brief descriptions of different solar energy financing programs. Questions? Call a Solarponics energy advisor for a solar energy quote and to discuss financing option that fits your needs.
What is PACE (Property Assessed Clean Energy)?
With PACE (Property Assessed Clean Energy), residential and commercial property owners living within a participating district can finance up to 100% of their qualifying energy efficiency project and pay it back over time as a voluntary property tax assessment through their existing property tax bill.
Why use PACE financing?
- Get up to 100% solar financing on qualifying improvements
- PACE may eliminate the need to pay out of pocket for your project
- TERM: 5 to 30-year repayment options
- TRANSFERABLE: Because PACE ties the solar loan to the property, not an individual, the loan may transfer upon sale.
- PACE is not a government program, and the homeowner must apply and be approved for the loan.
Active PACE programs In San Luis Obispo County:
California First: The CaliforniaFIRST Program is a Property Assessed Clean Energy (PACE) financing program for residential and commercial properties. Administered by Renew Financial, a national clean energy finance company, CaliforniaFIRST allows property owners to finance the installation of energy and water improvements on homes or businesses through the issuance of a municipal bond, which can then be paid back as a line item on their property tax bill. CaliforniaFIRST financing doesn’t rely on a credit score and does not require any money down, opening the program to a wide range of Californians.
Ygrene Works: Ygrene Energy Fund is a leading developer and administrator of clean energy financing programs throughout the United States. The fully funded Ygrene Works program provides immediately accessible financing for renewable generation, energy efficiency and water conservation upgrades to both residential and commercial property owners with no upfront costs. To-date, Ygrene has approved and/or funded $900 million worth of residential and commercial PACE projects that have resulted in more than 13,000 jobs and nearly $2 billion of utility savings for property owners.
Solarponics does not make loans or assessments and is neither a lender nor a broker. Financing is provided by energy financing lenders in cooperation with local governments, and financing approvals are subject to standard acceptance and documentation requirements.
WHAT IS IT? Solar Energy Green Loans are renewable energy and efficiency loans typically administered by a community bank or credit union.
WHO IS ELIGIBLE? Green Loans typically require a 650+ credit score, and 10% + equity in home
INTEREST RATE: as low as 2.99% depending on credit score
TERM: 12 to 20 year repayment options
BENEFITS: • May be eligible for the 30% federal Tax credit (consult a tax advisor) • Interest may be tax deductible (consult a tax advisor) • Available with ANY panel manufacturer and equipment • Greatest flexibility of terms and equipment option(s).
GOOD FOR A HOMEOWNER WHO: • can take advantage of the 30% federal tax credit • does not want to take out a second mortgage • is installing a qualified energy efficient upgrade.
WHAT IS IT? Also referred to as a second mortgage, you borrow against built-up equity in your home. Traditionally considered a secured line of credit.
WHO IS ELIGIBLE? Homeowner with a 680+ credit score • Current on first mortgage and 70% LTV (loan to value)
INTEREST RATE: as low as 3.99%
TERM: 10-years, renewable, or 30-year fixed
BENEFITS: * May be eligible for the 30% federal Tax Credit (consult a tax advisor) • You are investing in your home • No pre-payment penalty in most cases • Long-term repayment options for lower monthly payments • Interest may be tax-deductible (consult your tax advisor) • Allows for interest only payments, keeping more money in pocket
GOOD FOR A HOMEOWNER WHO: • can take advantage of the 30% federal tax credit • has equity in their home • wants to take advantage of the historically low interest rates • wants the flexibility of interest only payment or prepayment without penalty.
If you have NO tax liability, do NOT plan on selling your home in the next 20 year, and have no other means of paying for a solar energy system, a lease may be a good option for you. Leases come with 20, 25 or 30-year repayment term, with equipment warranties and production guarantees. DOES NOT quality for the 30% federal tax credit.
NOTE: Although a cash purchase or a fixed loan solar energy system will save you the most money, a lease can still save homeowners more money than doing nothing. As with all financing companies, make sure you are leasing thru a reputable institution. There are a few national companies who also have solid lease programs.
COMPARING A $0 DOWN LOAN VS. LEASE or PPA
San Luis Obispo County – Santa Barbara County – Monterey County