Solar Financing Options

Several financing options are available to PWP customers considering installing solar PV systems on their home or business, including:

• Third Party Ownership (PPA's and Leases) 
• Secured Financing 
• Unsecured Financing 

Click on any of the options listed or read on to see details of each.

Third Party Ownership 

>> Solar Power Purchase Agreements

• A Solar Power Purchase Agreement is a financial arrangement in which a third-party developer owns, operates, and maintains the photovoltaic system, and a customer agrees to site the system on its property and purchase the system’s electricity output for an agreed-upon rate. This financial arrangement allows the customer to avoid upfront installation costs and usually have lower electricity costs.

>> Solar Leases

• Solar Leases are similar to Power Purchase Agreements in that a third party pays for and owns the system, but with this financing mechanism a customer pays a fixed monthly fee that is not tied to actual energy output. The customer is responsible for system performance, operations and maintenance.
• For more information: www.energycenter.org/index.php/incentive-programs/california-solar-initiative/csi-latest-news/2167-why-pay-to-install-solar 

Secured Financing

>> Home Equity Lines of Credit (HELOCs) and Home Equity Loans (HELs)

• HELOCs are forms of revolving credit in which a home serves as collateral. A HEL is a loan that has a fixed rate and term and also uses a home as collateral. The major difference between these two types of financing mechanisms is that HELOCs are similar to a credit card – you can withdraw money as needed and pay back the debt indefinitely – whereas an HEL gives you a one-time lump sum of cash that is paid off over a fixed amount of time. These types of loans are typically available through banks.
• Home Equity Lines of Credit: www.federalreserve.gov/pubs/equity/equity_english.htm 
• Home Equity Loans: http://www.federalreserve.gov/pubs/bulletin/1998/199804lead.pdf 

>> FHA 203(k) Rehabilitation Loans

• The Federal Housing Administration (FHA) administers various single family mortgage insurance programs. These programs operate through FHA-approved lending institutions which submit applications to have the property appraised and have the buyer's credit approved. These lenders fund the mortgage loans giving a line of credit to the property owner to make property upgrades, such as solar PV installations.   
• For more information: http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/203k/203kabou 

>> HUD Title 1 PowerSaver Loans (Secured or Unsecured)

• The PowerSaver program insures loans to finance small or moderate improvements to a home, such as a solar energy upgrade. Loans up to $25,000 will be given to single family homeowners specifically targeting residential energy efficiency and renewable energy improvements. 
• For more information: www1.eere.energy.gov/wip/solutioncenter/financialproducts/PowerSaver.html 

Unsecured Financing

>> Fannie Mae Energy Loan

• Fannie Mae offers a direct, non-recourse consumer loan program that will finance up to $20,000 in energy improvements without putting a lien on your home. Energy Loan is a simple interest, fixed rate loan with longer terms available then typical bank financing.
• For more information: www.energyloan.net/index.php 

>> Clean Energy Upgrade Financing Program - ABX1-14

• ABX1-14 authorizes the California Alternative Energy and Advanced Transportation Financing Authority (CAEATFA) to administer a Clean Energy Upgrade Financing Program using up to $25 million to finance the installation of distributed generation renewable energy sources, electric vehicle charging infrastructure, or energy or water efficiency improvements on homes or small commercial properties.
• For more information: http://www.treasurer.ca.gov/caeatfa/abx1_14/index.asp 

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