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.