subject: How to Finance Home Solar Arrays [print this page] How to Finance Home Solar Arrays How to Finance Home Solar Arrays
Home solar power is the wave of the future. Some say using the sun's light as a financially viable way to power their home is still a few years away, but many trailblazing homeowners are taking advantage of solar rebates that help with financing their energy needs. The amount you save with solar energy is similar to the cost of a monthly phone billl. Wouldn't it be nice to live energy independent and use renewable resources as well? There are many ways to finance your dream of living off the grid. Some of the ones listed below are a good starting point for how to finance your project:
1. State Rebates: Several states have mandated that utilities provide rebates. As an example, the Arizona Public Service offers people $1.75 per watt up to 50 % of a project's cost. Typically, homeowners with 4 kilowatt systems receive $7,000 back.
2. Federal Tax Credits: Purchase solar panels to replace your utility bill and recover up to 30 percent of the cost! Best of all, these credits can be joined with state rebate programs for even more money in the bank.
3. Renewable Energy Certificates (REC's): Some States have Renewable Energy Portfolio Standards that allow you to buy or sell your additional solar electricity.
4. Solar Power Purchase Agreements (PPA's): Solar Panels for your home can also be solar for the community. By investing in solar panels and maintaining it on your property, you may be eligible to receive tax savings and other financial subsidies. Consumers in California and Oregon are already seeing a large return in the mail.
5. FHA PowerSaver Loans: Want to go solar but can't afford it? Good news -- the Federal Housing Administration announced that, in 2011, it will be supplying loans up to $25,000 for families with equity in their homes. The loan period can be as high as 20 years and interest rates have not yet been decided upon, but they're expected to be competitive.
As you can see, there are many methods to make your solar project affordable, without going broke or using all your spare cash to finance it. Most people don't realize how easy it is to go green.
