Many homeowners refinance their homes to receive a lower interest rate or better loan terms. North Carolina-based Cape Fear Solar Systems is now working with mortgage lenders to give their customers the option to refinance and include their solar projects.
Before making this mortgage refinancing an option for solar customers, Cape Fear Solar first tested the process with one of its employees who were ready to add solar to his home.
“I bought my home two years ago with the intention of adding solar panels. This has been a dream of mine since I started working in the solar industry,” said Robert Parker, senior project manager for Cape Fear Solar Systems. “I noticed mortgage rates were dropping and inquired about refinancing to include my solar project. The mortgage lender worked with me, and my interest rate is now lower by a whole percent point. I was able to add the cost of my solar panels directly into the loan.
“My monthly mortgage payments are now slightly higher, but I was cash positive on day one with the amount of money I’m saving on electric cost, not to mention I am looking forward to claiming the 26% Federal Solar Tax Credit,” Parker said.
There has been some recent attention to the housing market and that includes dropping mortgage loan rates. Consumers living in Southeastern, North Carolina can now contact Cape Fear Solar Systems to be connected with a solar-friendly mortgage lender. Solar customers that are not interested in refinancing their mortgage have other financing options as well.
“These are uncertain times, so homeowners want to make sure they keep power in the event the grid experiences any outages,” said Gabe Amey, Brunswick County’s residential solar project developer for Cape Fear Solar. “Hurricane season is looming near and financing options such as mortgage refinancing make solar affordable for everyone, so solar demand is currently high.”
Cape Fear Solar Systems is now offering free virtual solar consultations to support social distancing efforts.
News item from Cape Fear Solar Systems
Ed Ablard says
Will you clarify one aspect of the refinancing reported on in this article?
Did the price of the solar improvements get added to the value reported to the lender by the appraiser? The basis for that increase in the appraised price as justified by market in our area and reported comparable sales would be great news.
Solarman says
““I noticed mortgage rates were dropping and inquired about refinancing to include my solar project. The mortgage lender worked with me, and my interest rate is now lower by a whole percent point. I was able to add the cost of my solar panels directly into the loan.””
If one thinks about it, the practice of one “financing” some of the larger appliances in their homes has been around for a couple of decades now. For the cost of the latest/greatest energy star air conditioning system, one can get solar PV on their roofs, or ground mount for life. I don’t know if it is still offered, but Lennox at one time had their “Solar powered” air conditioning option that actually had the A/C unit and solar PV panels on the roof powering the air conditioning during the solar PV peak generation part of the day. Now you can get a grid tied system in the 10.5kWp to 12kWp installed for less than $25K. If you’re a DIY you could have grid tied 15.5kWp for $25K or less. As the technology is “enhanced”, the ESS with solar PV can add programmable options like energy storage for after hours self generation, off gridding of critical home circuits allowing some circuits being powered by solar PV and battery storage continuously. Asset task “stacking” gives one more bang for the buck. With solar and smart ESS one can use the system for powering the home, saving overgeneration for after hours use, offset TOU rate spiking charges or other sundry utility demand charges. Use the ESS for arbitrage, buy utility power when off peak and use when electric rates increase. Also be able to “island” critical house circuits when power goes out. Combining energy generation, storage, inverter control and being able to use the system as a small backup power supply for the house, stacks costs into one asset.