Financing Options for Solar Energy in Maine & New Hampshire
Historically, up-front costs have kept people from investing in solar - not today! A number of financing options are available for you if you're ready to go solar but can't afford to pay for it all up-front.
By spreading the investment costs over time, you can go solar today and save money and the environment.
Solar Loans Available in Maine
- PACE (Property Assessed Clean Energy) Financing - No money down, 5% loan up to 15 years
- Biddeford Savings Bank Home Efficiency Loans - Competitive interest rates, doesn't tie up home equity
- Sunpower 0-Down Solar Loans - No money down, up to 20 year loan on solar electricity
- Home Equity Loans Through Your Local Bank - Better interest rates with good credit
Solar Loans Available in New Hampshire
- Sunpower 0-Down Solar Loans - No money down, up to 20 year loan on solar electricity
- Home Equity Loans Through Your Local Bank - Better interest rates with good credit
PACE Loans
The much anticipated Maine PACE loan program is available as of April 4, 2011. These low-interest loans are administered through the Efficiency Maine trust and allow a homeowner to finance up to $15,000 at 4.99% over a period of 5, 10, or 15 years.
Key points on PACE:
- Minimum loan amount of $6,500, maximum loan $15,000
- Energy improvements must result in an overall home energy savings of 25% to qualify
- Energy savings is based on modeling performed by a qualified home energy auditor
- You must live in a town that has passed a PACE ordinance
- Fixed rate of 4.99%, 5, 10, or 15 year term, no pre-payment penalty or closing fees
- Loan is a junior mortgage and assumable (i.e. if you sell your home the loan can go with it)
How Do I Apply?
The first step to acquiring a PACE loan is to get an energy audit done. Please contact us if you're interested in a referral for an energy auditor or would like to know more about PACE.
The auditor will recommend several routes to saving energy in your house, and if they recommend solar hot water as an option, then solar hot water will be eligible for a PACE loan. Solar electric systems are eligible as well, in cases where the home is heated with electricity and the electricity savings by the solar electric system can be shown to help the household meet an electricity savings target of 25%.
As part of our commitment to a full-service renewable energy experience, ReVision's staff has been following the development of PACE and are intimately familiar with the process of applying for the loans. We also have strong connections in the energy auditing industry to streamline the process for you.
Which towns have passed PACE?
Efficiency Maine reports 41% of Maine's population lives in a town with a PACE ordinance - almost half a million people! 57 towns have passed PACE so far, including:
Albion, Alfred, Arrowsic, Arundel, Auburn, Augusta, Bangor, Bath, Belfast, Biddeford, Bowdoinham, Bradley, Brewer, Brooksville, Bucksport, Cape Elizabeth, China, Cumberland, Dayton, Dover-Foxcroft, Falmouth, Fayette, Fort Kent, Freeport, Gray, Hallowell, Hampden, Harpswell, Houlton, Kennebunk, Lewiston, Lincoln, Lisbon, Mechanic Falls, North Haven, Old Town, Orono, Phippsburg, Portland, Presque Isle, Richmond, Rockland, Saco, Scarborough, South Berwick, South Portland, Strong, Topsham, Vassalboro, Vinalhaven, Waterboro, Waterville, West Bath, Westbrook, Winslow, Winthrop, and Yarmouth.
In process, but not yet passed are:
Brunswick, Eastport, Unity, Buckfield, York, Old Orchard Beach, Kittery, Windham and New Gloucester.
If your town still needs to pass an ordinance, we recommend contacting your town officials to urge them to adopt the ordinance - Efficiency Maine has several PACE model ordinances (PDF) available that make these loans available to town residents risk-free to the town.
The Maine PACE Loans program was seeded by an American Recovery and Reinvestment Act (ARRA) grant from the U.S. Department of Energy. Efficiency Maine won the competitive grant to capitalize, administer and market the loans in a 2009 proposal. However, state law requires that all towns pass an ordinance enabling PACE before local homeowners become eligible for the loans.
More PACE Resources
- Efficiency Maine - PACE Program
- PACE - Rules of the Road and Program Info (PDF)
- PACE - Participating Municipalities (PDF)
- PACE - Program Brochure (PDF)
- PACE - Advisory Notice (PDF)
Biddeford Savings Bank Energy Efficiency Loan
Biddeford Savings Bank is offers a 7.99% APR loan program for financing solar energy projects and other efficiency upgrades. Homeowners in most of Cumberland and York counties, Maine, are eligible for this speedy and attractive loan option for solar hot water or other efficiency upgrades.
Financing is most attractive in this scenario for a home heating their domestic hot water supply with a high mass oil boiler (roughly 400,000 homes in Maine). These systems are enormously inefficient in teh summer, when the oil boiler fires up exclusively to heat water even on the sunniest days in August.
Solar hot water systems allow these homes to heat their water nearly entirely with solar energy from May through September (yes, even in Maine). With the boiler now largely dormant in these months, these homes will see a fuel oil savings of roughly 350 gallons of oil a year. That’s a savings of $1,284 a year when oil is $3.67/gallon, and even better as the price of heating oil climbs.
By putting down not quite half of the cost of the system, which is largely reimbursed by federal and state rebates, a homeowner can make a cash flow positive investment in solar hot water after year one.
Financing Solar Hot Water Systems by the Numbers
Below posits a $6,500 loan with a $6,000 downpayment on a solar hot water system. The initial $6,000 outlay is largely reimbursed by state and federal incentives, and ultimately completely recovered by energy savings.
Contact us with any questions about solar hot water system financials or for a complimentary site evaluation. You can call Biddeford Savings for loan details at: 207-284-5906.
Zero-Down Solar Loans Through Sunpower
As one of only two Sunpower Premier Dealers in Northern New England (and the only in Maine), ReVision is able to offer a zero-down, 20 year solar loan with rates as low as 5.24% through SunPower, manufacturer of the world's most power dense solar electric modules.
Key features of the new program:
- Available for SunPower premium solar modules, which boast up to 50% more power per sq. ft. than standard efficiency panels
- Loan amounts from $15,000 – $50,000
- Reasonable credit criteria and quick approval
- No pre-payment penalties
- Option to lower monthly payment after receipt of state/federal rebates
A grid-tied solar electric system allows you to generate your own clean energy straight from your rooftop – eliminating power company profits and reducing the need to fire up conventional coal plants for electricity generation.
Download Sunpower 0-Down Loan Program Flyer (PDF)
| Typical Terms for Homeowner with Good Credit | |||
|---|---|---|---|
| 5 Years | 15 Years | 20 Years | |
| Avg. Monthly Payment* | $247/mo | $125/mo | $117/mo |
| Avoided Electric Cost ** | $52/mo | $52/mo | $52/mo |
| Net Cost/Mo | $195/mo | $73/mo | $65/mo |
Some Samples of Premium Sunpower Solar Installations:
SunPower panels are only available through their high-screened dealer network. ReVision is the only Premier SunPower Dealer in Maine and one of a very few in the Northeast. Contact us to learn more about SunPower’s solar loan program.
Private Loan through your Local Bank
Many of our customers are able to use home equity loans from their local bank and use it to pay for a solar energy system. Rates now are at historic lows, making it an ideal time to invest in solar. If you need some information to provide to your bank - system economics or ROI information, for example, we'd be happy to assist. Just contact us.
What About Solar Leasing?
Solar leasing products are popular in states with high costs of electricity and generous solar rebates, such as California, Colorado, Massachusetts, and New Jersey. In a solar lease, rather than pay to own your solar panels, you pay no money for your solar installation and instead lease the panels over a term.
No company currently offers solar leasing in Maine or New Hampshire. The availability of state rebates and other incentives plays a large role in enabling companies to afford to finance solar leases. Should solar leasing company Northern New England, we will be the first to spread the word about the new program! In the meantime, you can enjoy a 0-down loan program through Sunpower; at the end of the term you own your system, unlike a solar lease, and you can enjoy free electricity for decades longer.
We also have this article from a Massachusetts homeowner explaining why solar financing (finance to own) was a better financial deal for him than leasing.
