Financing a Residential Solar System





The Solar Energy System is becoming a member in most modern residential areas. But a fully equipped Solar System will cost roughly around $20,000, a sum which is too big to afford. So, to facilitate those who want to buy the Solar Energy Systems, many companies are offering to finance it through various schemes such as Equated Monthly Installment and equated Efficient Mortgage.

Things that might happen without Solar Energy

Most of these financing methods are targeted at one purpose and that is to make the homeowners take the initiative to support Solar Energy. The world today is in dreadful need of alternative energy sources and solar energy is one of the best amongst all options. But it is truly a sad fact that it has been impossible so far to reduce the installation charges of Solar Systems. But with the monthly financing options, it will easier for homeowners to afford them.

Requirements to get finance for solar system

In most countries, these finances are given out only after an examination of your homes. In USA, there is a system called as the Home Energy Rating System (HERS) which will rate just about everything related to energy in your homes. An expert officer will come to your house and he will study the energy consumption, appliances used, and insulation facilities in your house.

After the examination, the officer will rate your house from the scale of 1 to 100. Usually, houses with points over 60 are likely to get financing. If your rating is not enough, the HERS officer will also suggest you pointers in order to improve the rating. You will be given a limited time period after which they will conduct the review again and rate your house for the second time. Due to this second review, most homes get the opportunity to finance their Solar Water Systems.

Residential Solar System
Residential Solar System

One thing that the HERS is strict on is the final expenditure. That is, if your monthly savings through the Solar System is less than the monthly installment, they will not give you the finance. So, you might have to go for a cheaper model of Solar System in that case. This is conducted because that HERS feels that no one should pay more than they save.

Types of financing systems

There are different types of Equated Efficient Mortgages such as the conventional one, federal one and the veteran's one. All of these offer different proposals and it is necessary to know about all of them before you make a choice.

The conventional EEM is the most common type. In this type of financing, you could borrow as much money as you would save through the solar system. So, if your estimate predicts you to save $2000 per month on Electric Bills through Solar System, you can get an EEM up to $2000.

The Federal EEM is given to the people who want to improve their electricity efficiency by integrating Solar Energy into their household. Finally, the Veteran's EEM is given to Military Men and Veterans who want to integrate Solar Energy into their existing or newly brought homes.

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