subject: How Can You Finance The Cost Of Your Pv System? [print this page] How can you finance the cost of your PV system?
When it comes to financing the cost of purchasing and installing your PV system, there are some special programs particular to financing solar and other renewable energy investments. But most of the
options will be familiar to you. The best way to finance PV systems for homes is through a mortgage
loan. Mortgage financing options 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. There are two advantages to mortgage financing.
First, mortgage financing usually provides longer terms and lower interest rates than other loans, such as conventional bank loans. Second, the interest paid on a mortgage loan is generally deductible on your federal taxes (subject to certain conditions). If you buy the PV system for your home at the same time that you build, buy, or refinance the home, adding the cost of the PV system to your mortgage loan is likely to be relatively simple. It is also one way to avoid additional loan application forms and fees.
If mortgage financing is not available, look for other sources of financing, such as conventional bank
loans. Seek the best possible combination of low rate and long term. This allows you to amortize your PV system as inexpensively as possible.
Because your PV system is a longterm investment, the terms and conditions of your financing are
likely to be the most important factor in determining the effective price of your PV-generated power.
PV systems for businesses are probably best financed through a company's existing sources of funds for capital purchasessuch as Small Business Administration loans or conventional bank loans.
by: Yoni Levy
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