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Mar 28 2017
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Affordable Solar Loan Providers

By Solar Loans: Financing Rates, Loan Terms, and More No Comments

The first homes to install modern photovoltaics were in the 1960s.  These early adopters were pioneers in alternative home energy.  They took a risk of installing new technology.  Costs were high and paid in cash.  Lucky for them, their financial investment paid off.  Those sturdy panels are still producing to this day. 

Since those first systems were purchased with cash, the industry has grown and evolved.  The solar financing industry has grown parallel to the mass adoption of home solar systems.  As more people are looking into alternative energy options for their homes, more financialgo solar.png institutions are seeing opportunity.  

Over the years, trends in solar financing have come and gone. For the first 5 years of this decade, the prevalence of Leases (also known as Power Purchase Agreements) rose to prominence.  The solar installation company owned the solar system and simply sold the power to the homeowner at a lower rate than their current utility.  This was a great way to have solar on your home without any initial cash outlay.  Additionally, homeowners could see immediate monthly savings making it appealing to many.

However, solar leases are not able to take advantage of the 30% Federal Incentive Tax Credit (ITC).  Only those who purchase and own the system can receive that credit. This reality has led to a decline in leases and PPAs over the last two years.

Financial institutions saw an opportunity in this coverage gap – they could finance the purchase of a photovoltaic system entirely, and allow homeowners to take advantage of the Federal ITC.  For many solar-minded homeowners, this is the best of both worlds.

In the current solar market, there are many new solar financing options available. There are options for those with low credit scores, those with some cash to put down, those who want to pay off their loan quickly, those who want greater immediate savings, etc.

Here’s a solid foundation for the available solar funding options out there. Check out our comprehensive guide on how to finance solar panel installations.

PACE Solar Loans

In the U.S. today, there is a program called PACE (Property Assessed Clean Energy).  It is a government assistance program – which varies state to state – which is aimed at making solar more accessible to lower income or credit challenged households.  PACE allows homeowners to use their home as collateral to finance their solar system.  imgres.jpg

Note, finance rates are higher for this type of loan. Therefore, it is typically not a good option unless all other routes have been exhausted.  If your debt to income ratio is not optimal, a PACE loan might be the right choice to go solar. PACE financing still pencils out for many homeowners with sky-high utility bills.

One main benefit of financing through PACE is that, should the home be sold, the balance of the solar loan transfers to the new homeowner.  It is a relatively simple process for both the seller and the buyer.

Examples of PACE programs in California include:

  1. HERO
  2. Ygrene
  3. CaliforniaFIRST

Each of these financiers has very similar loan structures and terms but varies slightly with interest rates and serviceable areas.

For a more traditional loan – where your house is not used as collateral – there are three separate options: re-amortized loans, combo loans, and SREC loans.

Re-amortizing Solar Loans

Re-amortizing loans are independently financed through a financial institution.  This loan type allows a homeowner to re-amortize their loan logo-1.jpgonce. Most homeowners use their tax credit amount to re-amortize the loan at tax season the following year. However, a homeowner does not have to re-amortize with their tax credit. Technically, this loan option can be re-amortized whenever and with any amount of money.

A typical lien is not placed on the home.  Home liens can be a problem for some homeowners. Rather, a UCC1 fixture filing is placed on the solar system itself to secure the loan.  This is often viewed as a safer, more prudent alternative to a home lien.

Examples of Re-amortizing Loan Financiers:

  1. Matador
  2. San Diego Metro Credit Union

Combo Solar Loans

Much like re-amortizing loans, combo loans are independently financed.  The main difference is that (in lieu of reamortizing a single loan) there are two separate loans. The first loan is for 70% of the contract price, which has an interest rate (for which the homeowner qualifies). The mosaic.png
second loan covers the remaining 30% of the contract price. This second loan is meant to equal the federal tax credit amount and typically lasts for 18 months with 0% interest. If this amount is not paid off in that allotted time frame, the balance adopts the same APR as the first loan, whatever that may be.

The main advantage to a combo loan is that the homeowner starts off with a lower monthly payment as compared to a re-amortizing loan. This can be helpful for homeowners where consistent solar loan payments are helpful for budgeting purposes.

Examples of combo loan financiers:

SREC Compatible Loans

For homeowners in a few U.S. states, there is a special program for which they are eligible. When the solar system generates 1 MWh (1,000 kWh), one Solar Renewable Energy Credit (SREC) is created. In each state with the program, these credits can be sold on their state’s open SREC market. They are regionally specific and only available in a handful of states.logo3.png

SREC Compatible Loans are those that take these credits into account when financing the cost of the system. These financiers offer two options for how SRECs are calculated into the loan offer.  The homeowner can choose either a complete upfront buyout for the value of the SRECs (lump sum), or an offer for a ‘fixed monthly product’. In this second option, the financier spreads the value of the solar system’s SRECs over the duration of the loan.

Much like the combo loan option, these options provide the homeowner with a consistent monthly payment that does not change over time.  It is helpful for those on a restricted budget or those who strongly prefer consistent payments each month.  

Examples of SREC Compatible Financiers:

So, Which Solar Loan Provider is Right For You?

Within each of these loan categories, there are many variations.  If you’re interested in pursuing financing for your solar system, our industry experts can help you choose the right one.  Solar.com solar.com to connect with our team and schedule a call.  We can help you navigate your options to find the right financial fit for your home. We encourage you to call your friendly solar educators at (888) 454-9979 to discuss your options or click here and we will be in touch!

Mar 27 2017
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Solar Panels For Boats and Yachts

By Solar Panel Installation Process No Comments

The purchase of a boat or a yacht is a coveted purchase for many people. While it certainly adds a new dynamic to one’s life, it’s not the most straightforward investment since maintenance is a huge component of owning a sea vessel. Other than the physical maintenance of your boat, fuel management and maintenance is often a logistical nightmare for many boat owners. Some of these problems include keeping batteries topped off; doing it quietly, as not to bother the surrounding communities; and refueling costs. An easy solution to these problems: solar panels.

Sizing a Solar System for Your Boat or Yacht

First, you need to determine how much power your boat is currently consuming. The most effective way to do this is to add up all the energy you are using in Watt-hours. This includesopen-seas-solar.jpg

  • Refrigerator(s)
  • Freezer(s)
  • Lights
  • Radar & sonar units
  • Computers
  • Motor(s)
  • Etc.

When adding up your energy consumption, always round up and add about 10-15% extra Watt-hours to your total, as certain appliances tend to use up more energy during spring and summer months. Once you reach the conclusion that you are ready for a further discussion, you can always reach out to a solar panel expert to get solar quotes, help with your energy calculations, and aid in determining the right number of panels you would need to offset your yacht or boat’s energy usage. Obviously, the number of panels you would need depends on energy usage and vessel size, but solar is a much better option than common fossil fuels when powering your boat.

The Benefits of Adding Solar Panels To a Boat or Yacht

When it comes to adding solar panels to your boat, the benefits are endless. Here are just a few for you to consider:

  • Silence: Noisy refueling at docks and extremely loud on-board generators are a thing of the past. Cruise the seas in with zero mechanical noises, and enjoy the natural ocean sounds.
  • Minimal Maintenance: The only maintenance solar panels require is a simple rinse off every couple of months, as salt can build up when the seawater evaporates.
  • Clean, Scalable Power: If your energy usage ever increases you could add solar panels or get higher efficiency panelssolar-powered-boat.jpg
  • Travel Lightly: With your new panels, you won’t have to lug heavy containers of fuel with you on your trips. More room for wine or martini mix.
  • Unlimited Energy: Aside from the occasional cloud in the sky, you will have full access to the sun on the open seas.

Besides the affordability and convenience, solar panels could inevitably save your life. You will never have to worry about running out of fuel when you are out on the water. This will help you avoid any potential emergencies or disasters.

Solar Panel Placement

This is where most caution needs to be taken. When choosing where you are going to place your solar panels on your yacht or boat, you need to take two big things into consideration: shading and security.

When it comes to shading, you want to make sure you place your panels in an area that receives the most sunlight. Having your boom shade some of the panels, or any lines can reduce your energy production. The wiring of solar panels can also be delicate. That is why you need to place your solar system in the most secure spot possible – rough seas or choppy waters could lead to a wire shaking loose.

If you’re longing to make a maintenance upgrade to your nautical vessel, a solar system should be seriously considered. Not only will it reduce noise, weight, and fueling costs, but it will differentiate your boat from all the other vessels at your next port.

Whether you have questions about panel placement, efficiency, or just if your boat is right for solar, please click here to speak to an expert!