Thanks to the expansion of solar financing options, it’s easier than ever for homeowners and businesses to buy and install a solar panel system. Across the country, more than half of all new solar installations are bought in cash, with a solar loan, or through a specialty financing option.
Ygrene Energy Fund is one of the leading providers of Property Assessed Clean Energy (PACE) financing in the country, and operates in California, Florida, and Missouri. If you’re comparing quotes for solar installations or other home energy upgrades from different contractors, you may have seen a financing option from Ygrene before.
How Ygrene home solar financing works
Solar shoppers typically have a few different options to finance their solar panel installation. Those who are less concerned about maximizing their financial savings, or who lack the annual income to benefit from the solar tax credit, may sign a solar lease or power purchase agreement (PPA) with a solar company. Homeowners who want to access the higher financial benefits that come from owning the system outright typically choose to buy it, either in cash, with a solar loan, or with PACE financing. While solar loans can come from a bank or a specialized solar lender, PACE is only available in states and cities that have approved this new financing product.
Ygrene offers Property-Assessed Clean Energy (PACE) financing that can be used to finance solar installations and energy improvements in California, Florida, and Missouri. Their financing option is a popular choice for homeowners comparing quotes on the EnergySage Solar Marketplace.
Ygrene PACE financing is offered to homeowners primarily through their network of solar installers and contractors. When your installer or contractor compiles a quote for your home, they often include a built-in financing option from a company like Ygrene (note: when you join the EnergySage Solar Marketplace you can simply indicate a preference for their financing option option during registration).
Ygrene’s solar financing options
Ygrene offers a special type of financing known as Property Assessed Clean Energy, or PACE. PACE financing in general, and Ygrene’s product in particular, may look a little different from a standard loan.
PACE financing are repaid through annual property taxes, rather than a monthly payment. Typically, payments are spread out over the course of 20 to 30 years. With PACE financing, homeowners are typically cash flow positive from day one, because they see the financial benefits of solar for months before their first payment (via property taxes) is due.
PACE financing isn’t restricted to home solar. As the name applies, it can be used for a variety of home energy upgrades, including things like replacing your heating and cooling system, upgrading insulation, or new windows and doors, among other projects.
Financing amounts and terms
Ygrene’s financing terms range from 5 to 30 years (Note: maximum term is set by state law, some states limit maximum term to 20 years). According to solar quote data on the EnergySage Solar Marketplace, the most popular option is the 15-year financing term. The company provides financing for projects as small as $2,500 and up to millions. You can easily cover the cost of a solar installation with Ygrene’s PACE financing.
PACE financing interest rates
Interest rates on Ygrene financing options will vary based on the customer. In 2017, options offered to EnergySage users had interest rates ranging from 4.99 percent to 8.49 percent. (Note: all interest rates are subject to lender approval.)
Other Ygrene financing options: home batteries, electric vehicle charging, and whole-home energy efficiency
In addition to financing for solar panel systems, Ygrene offers financing options for other home energy upgrades, including home batteries, electric vehicle charging, water conservation and energy efficiency improvements.
Ygrene financing vs. traditional bank loans
As mentioned above, homeowners have a few different sources of financing for their solar projects. EnergySage solar shoppers who finance their purchase will typically choose a loan from a traditional bank, a solar loan from a specialized solar lender, or financing from a PACE financing company like Ygrene. The type of financing product you choose depends on your priorities.
Solar is a relatively new technology, and some traditional banks may be hesitant to provide financing for it. While this is less of an issue than it was a few years ago, the fact remains that a company like Ygrene that specializes in lending for home energy improvements will be prepared with answers to any solar lending-related questions you might have.
As long as you have at least 10 percent equity in your home, are current on your mortgage payments, and aren’t in bankruptcy, you’re a good candidate for PACE financing from Ygrene. Borrowers with lower credit scores often prefer PACE financing, as the lending is tied to the property rather than the individual’s credit history.
Additionally, unlike traditional loans, PACE financing is “off balance sheet,” which means that it won’t prevent the property owner from being able to borrow additional funds for other purposes. It also won’t impact borrowers’ credit scores.
In some cases, PACE financing can make it more difficult to refinance your mortgage because of the way the financing is structured. If you’re considering refinancing, be sure to talk with your existing bank or mortgage provider before making a final decision on the loan you choose.
Where to get Ygrene financing for your home or business
Many of the 500+ local installers who provide solar quotes on the EnergySage Solar Marketplace use Ygrene as their financing provider. If you’re a homeowner or business owner in California, Florida, or Missouri and are interested in financing from Ygrene, simply join EnergySage today and indicate Ygrene as your preferred choice when you register your property.