While the current mix of federal and state incentives and utility programs has made a residential PV system one of the best investments currently available, it still requires a substantial up-front investment to purchase the equipment and installation. This up-front investment remains a barrier for many homeowners of modest means. Fortunately, this situation is also changing for the better.

The typical means to finance a PV system for your home has been with a home equity line of credit (HELOC), in which the equity value in your home provides collateral for a home-improvement loan to finance energy-efficiency upgrades and a renewable energy system. The utility savings and payments can substantially cover the financing cost, and in some cases even result in a net gain every month.

If you live within the Santa Fe city limits and have household annual income of less than $99,000 per year, you can qualify for a Homewise loan to cover the cost of PV and solar thermal systems, as well as energy efficiency upgrades. The program will finance systems up to 2.4 kilowatts of rated capacity, and the interest rate is currently 3.75%. For more information about this program, contact Homewise at 505 983-9473 or at www.homewise.org.

In 2009 the New Mexico passed groundbreaking legislation to allow cities, counties, and Special Improvement Districts to offer homeowner loans for energy efficiency and renewable energy systems. State laws were modified to allow voluntary opt-in homeowner participation. Loan repayments are handled through existing property tax assessments on the property where the system is installed. As ownership of the system is tied to the property, rather than to the homeowner as a loan, title to the PV system stays with the home if it is sold. Please contact us for further information about this remarkable legislation as it becomes available around New Mexico.

Further information on financing renewable energy is available here. This 2004 Home Power article, addresses many of the issues related to obtaining financing for renewable energy in general.