Fannie Mae has released a new program that will enagle more Americans to invest in energy efficiency, which includes solar. The HomeStyle Energy Program is a new mortgage option that gives borrowers the ability to complete clean energy upgrades up to 15% of the as-completed appraised property value of the home.
Borrowers are able to finance energy-efficient upgrades when purchasing or refinancing a home, eliminating the need for a subordinate lien, home equity line of credit, Property Assessed Clean Energy (PACE) loan, or unsecured loan.
For homeowners with existing, higher-interest unsecured loans, or PACE loans for energy improvements, this mortgage allows borrowers to refinance or roll the loan into a new, potentially lower-cost mortgage.
For more information about the Fannie Mae’s HomeStyle Energy Program please visit: https://www.fanniemae.com/singlefamily/homestyle-energy
PACE financing is an innovative way to finance energy efficiency and renewable energy upgrades to buildings. Interested property owners evaluate measures that achieve energy savings and receive 100% financing, repaid as a property tax assessment for up to 20 years.
The assessment mechanism has been used nationwide for decades to access low-cost long-term capital to finance improvements to private property that meet a public purpose. By eliminating upfront costs, providing low-cost long-term financing and making it easy for building owners to transfer repayment obligations to a new owner upon sale, PACE overcomes challenges that have hindered adoption of energy efficiency and related projects in our nation’s buildings.
Solar Loans are a great way to finance the installation of a solar photovoltaic (PV) system.
These loans may be secured (using your property as collateral) or unsecured. Terms for these types of loans are generally 7 to 20 years. Currently, interest rates on commercial loans range from 3.0%–6.5%.
Your solar panel system will generate free electricity over its entire working life—25 years or more. Your savings will far exceed the amount you would have paid your utility for electricity over that time period.
Your monthly savings on your electric bills will be greater than the loan’s monthly payment, so you’ll start saving money immediately. At first, you will save the difference between what you would have paid for electricity and your loan payment. Once your loan is paid off, you will be saving the full amount of electric expenses you are avoiding by going solar.
P.P.A & LEASE
Solar leases and PPAs are popular financing options for consumers interested in installing solar PV systems.
They are a good option for consumers who either want a $0-down option and/ or are unable use the Federal Investment Tax Credits (ITC) and state tax credits.
Solar Leases and PPAs are similar to renting your solar PV system. Under these arrangements:
•the solar leasing company owns and maintains your solar panel system
•the solar leasing company is entitled to all rebates, tax benefits (e.g., federal and state tax credits), and other incentives such as SRECs,
As the system "lessee" or "renter," you are entitled to the benefits of using the system, i.e. the energy that the system generates.
contract terms are generally for a 20-year period
Skybridge offers a 10% discount off any installers bid for projects over 20kw.
The Nonprofit will benefit from a 20 year prefunded PPA but the prefunded PPA is paid back over 10 years. The remaining 10+ years generate free energy for the nonprofit.
The Nonprofit will own the solar system outright at the end of 6 years. During the first 6 years, CollectiveSun owns it and we include a bumper-to-bumper warranty. The workmanship warranty and the manufacturer’s warranty on the panels and inverters are the nonprofits to keep after they take possession in 6 years.
There are three traditional ways for a nonprofit to pay for the prefunded PPA: 1) get a loan from a Bank or a Wall Street investor 2) cannibalize reserves 3) ask for donations. CollectiveSun offers a unique proprietary 4th option called Crowdlending which is basically a direct loan from the supporters of the Nonprofit to the Nonprofit. This loan is paid back with interest. The interest rate can be whatever the Nonprofits wants it to be.
An upfront capital investment in renewable energy is one of the highest internal rates of return your business can make. For more information on the advantages of installing renewable technologies please call contact us.