Turning More Prospects Into Solar Customers
You may find many potential customers who are highly motivated to install solar energy in their homes. They may realize all the benefits, from the boon to the environment to potential energy cost savings. But even though they may expect to save money in the long run, that won’t help them with the cost of having a solar energy system installed now.
Fortunately, there are a great many solar energy-financing options out there for your customers. These may vary by state, but in most cases, there should be a way to get your customers the financing they need. Here are some solar energy financing options to consider.
Fannie Mae and Freddie Mac
These well-known government mortgage lenders offer both conventional mortgages for up to $240,000 and Residential Energy Efficiency Improvement Loans (REELs) of up to $15,000. Their loans can cover energy efficient mortgages and energy efficiency upgrades, including solar water and space heating systems, as well as photovoltaic systems.
PowerSaver Programs
Certain lenders may participate in the PowerSaver Program, a government-supported program that guarantees loans of up to $25,000 for energy-efficient home improvements.
Solar Loans
There are companies out there that offer loans specifically for solar system installation. These loans have structures, terms, and conditions just like any home improvement loan and may even be no money down.
Home Equity Loans
Some people may be reluctant to borrow against the equity of their homes for solar system installation. However, it’s important to remind them that with the energy savings possible with solar, as well as any tax exemptions, rebates, or credits their state might offer, these energy efficient improvements may pay for themselves in only a few years, allowing the homeowner to pay off the loan and to continue to enjoy energy savings while helping the environment for years to come.
U.S. Department of Agriculture
The USDA offers substantial loans to borrowers in rural areas. Rural development borrowers may borrow around $300,000, and solar thermal and photovoltaic systems are covered under the Rural Housing Service plan. The Department of Housing and Urban Development
The U.S. Department of Housing and Urban Development offers a number of plans to help with financing solar energy. These include the Energy Efficient Mortgage Program, eligible for existing one to four unit properties for energy improvements identified with a home energy rating, and the Title I Property Improvement Mortgage Insurance plan, which allows lenders to make property improvement loans to borrowers with sufficient credit, even if they have little or no equity in their home.
VA Loans
Veterans Administration loans may be used to buy a home, of course, but they can also be used to improve a home with energy saving installations like solar heating and cooling systems, as well as other energy-efficient improvements (as approved by the lender and the VA).
In addition to all of these options, state rebates and tax credits may make paying for solar system installation home improvements easier than a potential homeowner may realize.
Introducing Homeowners to Solar Financing
More and more states are realizing the value in solar-powered homes, as is the government. If you have a homeowner or potential homeowner who is motivated to install a solar power system in their home, there are definitely resources out there to help them make that happen.
If a potential customer claims they cannot afford installing solar, it’s important to make sure they have exhausted all of the potential financing options, because there is almost certainly one or more that they can take advantage of to make their dream of a solar powered home a reality.
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