If you live in Chula Vista, you’ve probably considered joining the ever-growing community of solar-powered homes and businesses. Semper Solaris offers information on switching to solar in San Diego County by helping you get the financial support you need to get started.
We’re happy to offer guidelines on where to find financial assistance to support your switch to solar energy. For starters, the staff at the Public Works Department is always ready to provide up-to-date information on solar financing and incentives. Switch to solar panels and enjoy a clean, renewable energy source that makes a difference on your home’s energy usage and utility bills.
Federal Solar Incentives – Tax Credits
Taxpayers are eligible to apply for a Residential Renewable Energy Tax Credit or a Business Energy Investment Tax Credit that can be equal to 26 percent of costs related to photovoltaic panel system installation. For more information on incentives related to solar, San Diego residents can find more information on our website.
Property Assessed Clean Energy Programs (PACE)
PACE offers low-cost, long-term financing for energy-saving projects like solar system installation, repaid as a special assessment/tax on your regular property tax bill. Semper Solaris can help you confirm eligibility, which is based on equity and ability to pay, through Ygrene Energy Fund.
Semper Solaris offers secured financing through local credit unions, including Metropolitan Federal Credit Union and Point Loma Credit Union. With this type of financing, homeowners use their home as collateral for the loan. Typically, these loans provide lower interest rates than unsecured loans, and the interest is usually tax-deductible.
Federal Housing Administration 203(k) Rehabilitation Loans are mortgage programs provided through lenders that have been approved by the Federal Housing Administration (FHA). These mortgages are intended for various home upgrades, among other photovoltaic (PV) systems.
PowerSaver Loans (which can be both secured and unsecured) that can amount to $25,000 are intended for single families who want to have small to moderate home improvements aimed at better energy-efficiency and renewables.
Fannie Mae Energy Loan is a direct, unsecured loan for energy-efficiency home improvements in the maximum amount of $20,000. The loan has a fixed rate, low interest and quite long pay back terms in comparison with bank loans.
Clean Energy Upgrade Financing Program ABX1 14 is an unsecured loan for residential and small commercial property. This program targets owners who want to install renewable distributed generation, the infrastructure for charging electric vehicles or energy- and water-efficient systems. The program can provide financing up to $25 million through the California Alternative Energy and Advanced Transportation Financing Authority (CAEATFA).
Third Party Ownership
Solar Power Purchase Agreements (PPA) are arrangements in which the customer sites a solar panel system and buys the electricity at a low cost from the third party that owns, maintains and operates the system. The benefit for the customer in this case is the zero-out-of-pocket aspect for installation costs.
Solar Lease Programs are very similar to the previous arrangement, but in this case the customer pays a fixed monthly amount regardless of the energy used and is responsible for operating, monitoring and maintaining the system.
Other Methods of Financing
Feed-in Tariff allows the owner of the renewable distributed generation to get a refund for the electricity they produced but sent back to the utility grid because they didn’t need it.
Virtual Net Metering is designed for multi-metered properties. Production credits form one PV system can be sent to individual homeowners.