Solar power has been around for over 100 years but only recently has it become an affordable option to control the ever-increasing energy costs we are experiencing. Utility company’s rates have been steadily increasing by about 6.5% a year, with a 30% jump in the last three years alone. By utilizing this sustainable technology, you are decreasing your electrical costs and increasing the value of your home for years to come. Solar power just makes sense.
Electric On Demand understands that installing a solar power system is an investment and we will work with you every step of the way to ensure that your investment makes sense for you. A few options that will help you to finance your system include:
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Credit Card
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Home Equity Line of Credit (HELOC)
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Federal Loan Programs
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Energy Efficient Mortgages (EEMs) can be used by homeowners to finance a variety of energy efficiency measures, including a solar energy system.
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Energy Efficient FHA Loan, Energy Efficient Mortgages can be used to make energy-efficient improvements in one- or two-unit existing and new homes. The improvements can be included in a borrower's mortgage only if their total cost is less than the total dollar value of the energy that will be saved during their useful life. The cost of the improvements that may be eligible for financing as part of the mortgage is either 5 percent of the property's value (not to exceed $8,000) or $4,000, whichever is greater.
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Energy Efficient HUD, FHA's Energy Efficient Mortgage program (EEM) helps homebuyers or homeowners save money on utility bills by enabling them to finance the cost of adding energy efficiency features to new or existing housing as part of their FHA insured home purchase or refinancing mortgage.
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NREL, National Renewable Energy Laboratory is a national laboratory of the U.S. Department of Energy and offer several publications that might be helpful.
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Privately Funded Loan Programs
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Electric On Demand is always pursuing competitively priced financing. Ask us about the Title-I Home Improvement Loan which offers loans up to $25,000.00 for non-equity based home improvements. No appraisal required and rates as low as 6.95%.
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Example of 5 kW solar system (as of 4/15/2011) |
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Approximate Cost of System |
$22,250.00 |
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APS Utility Rebate (current incentive level of $1.45 a watt) |
-$7,250.00 |
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Arizona Tax Credit |
-$1,000.00 |
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Federal Tax Credit (30% of Total Price) |
-$6,675.00 |
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Total Investment |
$7,025.00 |
An properly positioned 5 kW solar electrical system will create approximately 8,000 kWhs of electricity every year in our area of central Arizona – and with an average electricity cost of $.25 per kWh (averaged from on-peak and off-peak rates), you can eliminate $2,000 a year from your electric bill. This system would then pay for itself just by the energy it produces in 3.5 years.
After your solar system pays for itself in a very short amount of time, it will continue to produce clean, reliable energy for many years to come.
Information on tax credits:
Residential Solar Energy Systems Tax Credit - $1,000 maximum credit per residence, regardless of number of energy devices installed
Solar Equipment Sales Tax Exemption - Arizona provides a sales tax exemption for the retail sale of solar energy devices and for the installation of solar energy devices by contractors.
Residential Renewable Energy Tax Credit - A taxpayer may claim a credit of 30% of qualified expenditures for a system that serves a dwelling unit located in the United States and used as a residence by the taxpayer.
Solar-electric property
- There is no maximum credit for systems placed in service after 2008. The maximum credit is $2,000 for systems placed in service before January 1, 2009.
- Systems must be placed in service on or after January 1, 2006, and on or before December 31, 2016.
- The home served by the system does not have to be the taxpayer’s principal residence.