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Follow on Google News | New Solar Loan Available for Massachusetts HomeownersAll the Financial Benefits of Solar Ownership With No Money Down
The company’s Clean Energy Combo Loan provides 100 percent financing for solar electric systems costing between $14,000 and $55,000. The monthly loan payment is less than the homeowner’s projected electricity savings plus Solar Renewable Energy Certificate (SREC) income, so the homeowner is cash positive from the beginning. (For reference, a 6,540-watt system with the most powerful panels available today costs approximately $35,000 before rebates and tax credits. A loan of $55,000 is enough to finance a solar electric system of approximately 11,000 watts.) "The Clean Energy Combo Loan was a game changer for us. I looked at installing a solar array two years ago, even though it had a positive return in six years, I could not swing the finances. A few weeks ago, I decided to check in with New England Clean Energy again, and discovered the Combo Loan. With projected positive cash flow in the first year, I immediately decided to install solar," said Steve Frederick of Shrewsbury. “Previously, people had two choices: buy a solar electric system outright, which required a significant investment but came with substantial financial benefits; or lease a system with no money down but none of the financial benefits of ownership. The Clean Energy Combo Loan changes the equation completely, allowing people to buy solar and gain the associated financial benefits, but with no upfront investment,” A recent customer survey by New England Clean Energy found that the majority (51 percent) think purchasing solar energy is better than leasing (favored by 11 percent). People who buy solar electric systems benefit from SREC income, federal and state tax credits, and a state rebate. Ownership delivers Return-On-Investment of approximately 170 percent over 20 years. In addition to financing solar via the Combo Loan, New England Clean Energy sells systems outright, and offers a Power Purchase Agreement (PPA), which is similar to a lease. According to the company’s recent survey, 63 percent of its customers used money from a savings or other bank account to pay for solar, and 28 percent borrowed money in the form of a home equity loan or mortgage re-financing. The company began offering PPAs in 2012. The Clean Energy Combo Loan has two pieces: a 12-month Same-As-Cash piece and a 12-year piece at a fixed 2.99 percent interest rate. The Same-As-Cash portion equates to an advance on the federal tax credit of 30 percent of the system cost. No payments are required for 12 months and no interest accrues as long as the amount is re-paid by the end of 12 months, after the customer receives the IRS tax credit. The remainder of the system cost is financed at a fixed 2.99 percent interest rate for 12 years. Payments for this portion of the loan start 30 days after the solar system is approved for interconnection by the customer’s utility. The loan is unsecured, meaning the buyer’s home is not used as collateral and there is no lien placed on the home. Primary and vacation homes are eligible for the Clean Energy Combo Loan. The loan does not have pre-payment penalties. New England Clean Energy is also offering a standalone Same-As-Cash Loan for six, 12 or 18 months, for people who just want to cover the amount of the federal tax credit until they file their tax returns and receive their refunds. Visit The Energy Miser blog at http://newenglandcleanenergy.com/ Founded in 2006, Hudson, Mass.-based New England Clean Energy has installed more than 300 solar energy systems, and put more solar on Central Massachusetts homes than any other local installer. The company designs, engineers and installs solar electric and solar hot water systems, as well as related products, for homes and businesses. MassSolarInfo.com recently awarded the company five honors, including Highest Customer Satisfaction among Massachusetts solar installers. For more information, visit www.NewEnglandCleanEnergy.com or call 978-56-SOLAR. End
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