Solar financing options in florida
HELOC
Refinance
PACE Loans
Traditional
Using a HELOC as your solar loan
A www.bankrate.com search found that a credit line of 20,000 home equity can be offered for 4.5 percent with no payments to a borrower with a credit score of more than 700. If this is right and $3.50 per watt is estimated before the solar tax credit of 26 percent.
Then a regular 6kw device would allow you to repay $21,000 until you can do your taxes and get back your 26 percent solar tax credit ($5,460.00), at which point you will pay down to $15,540 for the loan balance. This debt would cost you $1179.72 per year in total loan contributions at a rate of 4.5 percent for 20 years.
Nonetheless, a 6kw system will remove an annual power bill of up to $1,800 (depending on your state), and this creates opportunities either to take some short-term monthly savings or to pay down the system fast and maximize the number of years of free energy you get at the end.
Refinance your entire home loan and add a solar system to the balance
Let’s presume you have a $200 monthly power bill and a $300,000 20-year mortgage on the house you took out five years ago that has a 4.8 percent interest rate.
Believe it or not, refinancing your home loan may be necessary for you, so that:
You apply about $18,000 to it for the purchase of a 7kw solar system that covers the electricity bill (after earning 26 percent tax credit and paying back the loan).
Your new home loan balance is $243,000, after paying down the debt for five years (about $75,000) and applying the sum of the solar system ($18,000).
Your old net loan payment was $1946.00 now your payment is $1447 a month, saving $499;
You also don’t have a power bill anymore, saving you around $200 a month or $2400 a year for a cumulative saving of around 3,100 a year.
This is how if I were in that role, I would buy solar.
You can play for yourself with these numbers at www.calculator.net and see offers offered at any of the major home loan platforms, including Loan Tree.
Pace solar loans
According to PACENow, a non-profit which tracks the PACE industry, residential PACE funding has doubled from $1 billion to $2 billion in less than a year. It is an alternative to fund solar energy only in places where:
- Legislation has been passed to fund programs within PACE;
- Specific projects have been initiated and sponsored, usually through a collaboration between a private financier and a jurisdictional local authority.
The biggest feature of a PACE loan is that the repayments are taken on the home by property tax reviews from local authorities, and this debt obligation comes with the house when it is sold.
The second important argument is that, generally, implementing law for PACE programs requires clauses to make this funding available to low-income earners and poor credit individuals. As such, this makes solar and energy efficiency benefits available to more people.
Florida and Southern California were the first to see the advent of PACE programs, but, over time, they are likely to emerge in more and more regions.
Traditional Loans
Freedom Solar Energy provides Solar financing options. One loan is structured in such a way that monthly payments are less than their current electricity bill. The average customer with Freedom Solar Energy saves $30,550* over the life of the solar system loan, even starting from the moment the system is turned on.