Financing for Solar Hot Water Systems is available through the following agencies and companies.
Agency |
Program |
Loan Amount |
Collateral & Term |
Interest Rate |
Energy Features and Systems Covered |
Fannie Mae Corp.
www.fanniemae.com |
(a) Conventional Mortgages;
(b) Residential Energy Efficiency Loans |
(a) up to $240,000
(b) up to $15,000 |
(a) secured; 1 to 30 years (adjustable, fixed, or ballon);
(b) unsecured; up to 10 years |
(a) market rates
(b) usually below market rates |
(a) Energy efficient Mortgages;
(b) Energy effiency upgrades: solar water & space heating, PV Systems |
Federal Home Mortgage Loan Copr.
www.freddiemac.com |
Conventioanl Mortgages |
up to $240,000 |
First mortagage to 95% loan-to-value; 15, 20, & 30 years (including balloons) |
fixed at market rates, variable at prime +2% |
Energy-efficient mortgages that meet Freddie Mac's Criteria |
US Dept of Agriculture (USDA)
www.usda.gov |
Rural Housing Service, Rural Business-cooperative Service, Rural Utility Service |
$300,000 (average) |
As negotiated with RUS borrower; 10 years |
0%; conventional mortgages at market rates |
Solar Thermal Systems; PV Systems |
US Dept of Energy (DOE)
www.doe.gov |
Energy Savings Performance Contracts, State Energy Conservation and Weatherization Assistance |
Varies |
Unsecured, Varies |
Rate Varies |
Energy-efficient features and equipment; Solar Thermal Systems; PV Systems |
US Dept of Housing & Urban Development (HUD)
www.hud.gov |
Energy Efficiency Mortgages for FHA 203(b) and (k) Insurance Programs, etc,; Special HOME, HOPE VI, and Title I Programs for energy efficiency and solar system (with limits) |
HUD Area Limit |
First mortgage: to 120% loan-to-value, Second Mortgage: no maximum loan-to-value; 10 and 30 years |
Fixed or Variable Rates |
Energy-efficient features; Solar water and space heating; PV Systems; EEMs to 10% above base loan amount |
US Dept of Veterans Affairs (VA)
www.va.gov/loan/lenders |
VA Home Mortgage loan Program |
up to $203,000 |
First Mortgage: 100% loan to value plus costs; 10 and 30 years |
Fixed Rates |
Energy-efficient features and appliances; Solar water and space heating; PV Systems; EEMs to 10% above base loan amount |
US Environment Protection Agency (EPA)
www.epa.gov |
Energy Star Rated Home, Energy Star Rated Building |
Guided by Fannie Mae and Freddie Mac Limits |
First Mortgage: to 120% loan to value; 30 years |
Market Rates, but discounts are available on some loans |
Energy efficient features making home up to 30% more efficient than code; solar thermal and space heating; PV Systems; 10 year or less payback required |
US Small Business Administration (SBA)
www.sba.gov |
7(a) std small bus loan, 7(a)-12 Energy Loan Program, 7(m), etc. |
up to $750,000 guarantee (7(a)) |
Guarantees 80% to $100,000; 75% if more than $100,000; Varies |
Market Rates |
Energy-efficient features; PV Systems, Solar Thermal Systems, and other Renewable Energy Systems |
Please note that the following programs may apply to both Solar Hot Water Systems and Photovoltaic Solar Electric Systems.
