Offset The Cost of Solar Energy With Solar Energy Loans!

The cost of solar energy implementation often causes erstwhile homeowners to delay getting started. But what if the government would subsidize your solar power costs with a loan? While not an immediate or direct subsidy, tax-deductible home equity loans have a lot in common with government subsidies that help you minimize the upfront cost of solar power. When you take out a second mortgage to finance the initial cost of solar energy plan implementation in your home, the government allows you a tax-free deduction on any interest you pay on that loan!

Here are a few tips to help you discover a little bit more about just what to do to offset your solar power costs. You need to be up to speed on all aspects of solar tax credits, so you can pass this along to your tax preparer. Any contractors you employ should also be aware of these solar subsidies. Using a contractor well versed in the cost of solar energy, solar tax credits and tax-deductible home equity loans can help answer any questions you have, even if you plan on handling the install yourself. And your local utility company is required by law to give you any and all information you need, though they might not do so in a friendly manner. (After all, you're digging in their wallet!)

So, how do you get a loan to offset solar power costs? Obviously, if you help lessen the load on power companies, the government will happily give you incentives to do so. By acting as a sort of co-signer, the government takes responsibility for some of your loan. But don't just grab the first loan offer, there are several to choose from, and some offer better numbers than others.

As mentioned before, home equity loans are very common vehicles for offsetting the cost of solar power, because your home puts the lender's mind at rest when it is used as collateral. You can usually get lower interest rates because of that. And instead of a second mortgage, try obtaining a new first. You can often wrap the cost of solar energy plans for your home into the new first, and get a lower interest rate as well. You will save on your monthly energy bills, so even if the new first is a little higher, you may actually pay less overall.

Another less common plan of financing is to apply for an energy efficient mortgage (EEM) loan. A licensed energy consultant will test your home, and if it passes certain criteria in regards to cost of solar energy and energy efficiency, you qualify! The benefit here is these loans are generally lower in interest, because your home has already been proven to fit the model for long-term energy efficiency by implementation of your solar plan.

Check with Residential Energy Services Network (RESNET) if you want to research an energy-efficient loan further. RESNET is a group of builders, lenders, banks and mortgage companies that offer solar loan packages for qualifying homeowners.

There basically two different types of energy efficient mortgages: those for new and existing homes. In all cases, a lower interest rate financed in part by the government helps defray your cost of solar energy.

Below is a list of the major players in the solar tax credit and tax-deductible home equity game who can help you replace your initial cost of solar power. We have no affiliations with these sites, and recommend full research and talking with solar industry professionals for answers to any questions you may have.

  • Residential Energy Services Network (RESNET): RESNET is a group of builders, lenders, banks and mortgage companies that offer solar loan packages and energy efficient loans for qualifying homeowners.
  • Fannie Mae: This is the Federal National Mortgage Association, which encourage lenders to give EEMs through incentives. At you can access a list of lenders who currently offer EEMs.
  • Freddie Mac: Fannie Mae' sibling, The Federal Home Mortgage Loan Corporation, handles the same types of EEMs but on a longer term loan basis. You can learn more at
  • Farmer Mac: This program is available exclusively to farmers, and you can get your fill of information at

And don't forget state resources as well. Many state agencies offer EEMs and solar incentives, and you can the list of subsidizing companies at the National Association for State Energy Officials' website,

So whether you turn to Uncle Sam or a private lender, if you are thinking about defraying solar power costs and cutting your tax liabilty as well, remember there are several resources for you to recoup a portion or even the entire cost of solar energy home projects thanks to incentivized and qualifying plans.

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