Financing Clean Energy
Going green isn’t cheap; the cost of a renewable energy power generation system is a high ticket purchase. With the average residential solar power system costing about ,000 more financial institutions such as banks and credit unions are offering Solar Power loans to help consumers finance their renewable energy power systems which eliminate upfront costs and offer low monthly payments that are competitive to your existing monthly energy bill.
Creative loan packages are being offered to consumers, for example Austin Energy, a community-owned utility in Austin, Texas, offers low-interest, no-fee loans up to $20,000 for the purchase and installation of PV solar systems, payable over 10 years with no prepayment penalties. Interest charged on loans made to purchase renewable energy power generation systems can be also deducted from taxes which makes the though of financing a system even more attractive. The #1 way consumers are purchasing residential solar power generation systems is through a home equity or lines of credit offered by banks, In many cases the loan payment is similar to the amount the consumer will be saving on their utility bill, which results in an immediate positive cash flow.
According to Borrego Solar, a leader in installing solar power generation systems, there are a number of ways to finance a commercial solar power system. These include Property secured loans, Capital equipment loans, SAFE-BIDCO energy efficiency loans, Equipment secured loans, 3rd party financing.
