Financing Options
Need Financial Assistance for a Solar Project? Let 1 Source Solar Help You Explore Your Options
Solar energy is an investment that will pay off for years to come. But if the cost of installation seems daunting, don’t worry. There are many financing options available to help you start seeing savings right away.
Here at 1 Source Solar, we’re committed to helping you navigate the financial landscape to find the solution that works best for you. We’ll provide you with a clear picture of your cost expectations and expected return on investment from the start, helping you decide how to best maximize available grants, state and federal government incentives, and financing options.
Here’s a look at some of your financing options. Please reach out to 1 Source Solar team for more information.
Solar Loans
Solar loans are loans specifically designed for solar projects that allow you to repay the balance over several years. At 1 Source Solar, we partner with Greenpenny Bank and VisionBank, which both offer solar loan programs.
Greenpenny Bank
- Residential loans of up to $70,000 from 1-20 years.
- Industrial solar customers can finance up to 100% of their projects, depending on their income.
- Fixed interest rates are available for the full length of the loan.
Residential, commercial, and industrial solar users.
Home Equity Loans & Home Equity Line of Credit (HELOC)
You can use your home’s equity to unlock the solar potential of your property. Two options are home equity loans and home equity lines of credit (HELOCs). Home equity loans typically have fixed interest rates and come in the form of a single lump sum, while HELOCs often have variable interest rates and allow you to take out money as needed. A financial adviser can help you determine which option is best for you.
You usually are required to have accumulated at least 15 to 20% equity in your home to borrow, and loans can be up to 80 to 85% of the equity of your home.
Home Improvement Loans
Home improvement loans are a flexible option for homeowners, allowing you to borrow money to upgrade your home in a variety of ways, including the installation of solar panels. These loans are flexible, which makes them a worthwhile option to explore if you need financing.
Neighborhood Finance Corproations
Neighborhood finance corporations offer targeted financing and assistance to support neighborhood revitalization efforts. In Des Moines and Cedar Rapids, select area neighborhoods can qualify for a deferred loan of up to $10,000 and an additional forgivable loan of up to $10,000. If you live in one of these areas, we can help you complete the steps needed to qualify.
Power Purchase Agreements
A solar power purchase agreement is an arrangement where a developer and a Commerical or Agricultural customer work together to cover the cost of a solar installation. The developer covers the cost of designing and installing the system on the customer’s property, and then the customer purchases the solar-generated power from the developer. The customer benefits by having fixed, lower energy cost and no up-front expenses for installing the system. The developer benefits by receiving payment for the energy and collecting any tax benefits or other incentives awarded for the project. The developer is responsible for the system’s upkeep for the length of the agreement. Contact us for more information on setting up a power purchase agreement.
Whole Life Insurance Policy
Do you own a whole life insurance policy? Some whole life insurance plans allow you to borrow against the plan’s accumulated cash value to invest in your solar project. Insurers often cap borrowing at around 90% of the policy’s cash value and charge interest, typically at a lower rate than other types of loans. Check with your insurer to see what options are available.
Qualified Retirement Plans
If you’ve reached age 65, a qualified retirement plan could be another option to fund your solar project. You can receive the 30% Solar Investment Tax Credit on withdrawals from your account that are used to pay for your solar project.