Solar Systems And Your Mortgage
As the costs of solar systems for homes has fallen, and awareness of their benefits has increased, many North Carolinians are curious as to how they can take advantage of the technology. While it is certainly true that solar is a great investment that can dramatically decrease your utility bills, the upfront investment can be a challenge for current and potential homeowners. Many of the existing financing options can be confusing, and high interest rates may make the investment less attractive. However, this issue can be overcome by simply including the system in your mortgage.
Whether you are refinancing or buying a new home, approved lenders allow you to use 15% of the appraised value of the home for energy efficiency upgrades. By taking advantage of the low rates of a mortgage you can make your solar system cash positive from day one. Additionally, the purchase allows you to take a 30% federal tax credit against your income taxes. That’s $5,000-$10,000 that can go a long way when furnishing or improving a new home.
For example, on a $225,000 home the Fannie Mae Homestyle Energy Program allows you to purchase a 9.6 kW system for a little more the $32,000. At a 30-yr mortgage rate of 4.25%, this increases your monthly payment by $159 while the monthly electricity savings on a SunPower system from Cape Fear Solar, together with the mortgage interest deduction, will average $164. The fact that you would be spending more money per month without a solar system is enticing in and of itself, couple that with a $9,719 tax credit and solar is clearly a top-notch investment.
Interest rates are at near all-time lows (averaging around 3.66% nationally) and utility costs are rising at a conservative estimate of 3.4% per year. In a climate of increasing volatility in the stock market and low yields on government bonds, this is truly a perfect time for anyone buying a new home or refinancing to look into solar as a secure and stable investment in clean energy.
Call us today so we may tailor a solar system to your needs.
For more information, visit:
New Fannie Mae Energy Program Helps Americans Go Solar
Fannie Mae HomeStyle Energy Mortgage Loans
Prepared by Robert Parker, Cape Fear Solar Systems’ Project Manager & NABCEP Certified PV Professional
