Going Solar Without Cash

You don’t need to pay in cash to go solar.  As a matter of fact, you can achieve better cash flow by financing your system.  In today’s market, interest rates are low and money is cheap.  There are many different financing options for qualified customers.  Banks offering energy efficiency loans at special rates are becoming more common, and with the right amount of equity, you can even refinance your home including the cost of the solar system in the refinancing.  Although different types of financing have different benefits, no matter what avenue you choose you will see instant savings on your electrical bill, increased cash flow, and an increase in the value of your home.

 It’s common practice for people to refinance or take out loans for home improvements such as bathroom and kitchen remodels.  These kinds of renovations are supposed to pay for themselves when it comes time to sell your home.  A solar electric system has the same effect, only better in many ways.  Currently, appraisers use a 20:1 ratio when evaluating energy improvements.  This means that for every dollar your home saves on energy bills, 20 dollars is added to its value.  So, if your solar electric system saves you $1,000 annually in energy costs, then $20,000 is added to the value of your home.  In many areas the added value of solar is property tax exempt* meaning that even though your home’s worth has increased by $20,000, the added value is not taxed!

 Presently, as well as adding value to your home, refinancing can also lower your monthly mortgage payment (even with the inclusion of a solar electric system) and increase the value of your house; all with no money down.  To top off the benefits of financing your solar electric system, this renovation also qualifies you for the 30% Federal Income Tax Credit and in many cases is sales and use tax exempt**. 

 So, if you are looking into making a long term investment in your home, consider a solar electric system.  With appropriate financing, this investment has ample benefits in the long and short term by lowering your energy bill for years to come, increasing your cash flow and adding value to your home.


* This is subject to the regulations in your area.  Property tax exemptions vary by state and municipality and, therefore, may or may not be available and will have different terms through the country.

** All financial information is subject to individual circumstances.  This article is meant to be used as a resource outlining the available financial benefits when financing a solar electric system.  This article is not personal financial advice.