System Financing for Residential Property

Solar projects can be financed through cash payment or an increasing variety of alternatives:

  • refinanced home mortgage
  • home equity loan
  • specialty finance loan
  • lease

The market for residential solar financing is evolving quickly.  A number of the leading solar installers are working directly with financial services companies to provide packaged financing deals where there is little or no upfront payment required (although you should be carefult to read the small print). 

Mortgage financing usually provides longer financing terms at attractive interest rates and interest paid on loans is generally deductible. 

If you are building, buying, or refinancing your home, adding the cost of the solar system is likely to be relatively straight forward. 

While the upfront cost of the solar array is large, it provides significant protection against rising electricity costs, as the cost is fixed for the life of the loan and the homeowner owns the system once the loan is repaid.  This has implications for the value of a property.  

You should consider speaking with a real estate appraiser in your area to get an indication of the increase in house value resulting from the solar installation; this should also factor into your long-term cost/benefit analysis.     

Now check out: Installer Questions