Financing

Installing a solar energy system on your home can increase its value and consequently can be financed. Currently the best way to finance a solar system is through a mortgage loan.

Affordable Solar is currently working with Wells Fargo to develop loan programs specifically for solar installations. These programs are not yet available, but should be ready in mid 2009.

Mortgage financing options can include: your primary mortgage; a second mortgage, such as a U.S. Department of Housing and Urban Development (HUD) Title 1 loan; or a home equity loan that is secured by your property.

Two advantages come with mortgage financing. First, mortgage financing usually provides longer terms and lower interest rates than other loans, such as conventional bank loans. Second, the interest pain on a mortgage loan is generally deductible on your federal taxes (subject to certain conditions).

If you buy a solar system for your home at the same time that you build, buy, or refinance the home, adding the cost of the system to your mortgage loan is likely to be simple. Financing this way is also one way to avoid additional loan application forms and fees. If mortgage financing is not available, you can also look for other sources of financing, such as conventional bank loans.