What happens during hurricanes or hailing?

An image speaks louder than a thousand words. Storms are considered “Acts of God”, which term is covered under most home insurance policies. It is recommended that you add your solar system to be covered under your home insurance. However, solar panels are built to sustain heavy rain, winds and hail. Rather than damaging the structure, solar arrays will strengthen and protect the integrity of your roof and home with little to no risk of damage during storms.

How long will solar panels last and what’s the warranty?

Generally speaking, solar panels carry a 25 yr warranty with an industry standard of 10 year workmanship warranty on the installation. The warranty covers malfunctions and energy output of at least 99.5 % per year.

Solar panels are too expensive. (FALSE)

Solar is a solid investment that will pay back handsomely for years and years when properly installed. In addition, current government tax incentives and local rebates help pay a significant close to a third of the cost of a solar system. Lastly, solar costs have dropped over 60% in the last 10 years while technology improvements have not only increased the yield of energy efficiency but also improved the aesthetic looks of rooftop solar arrays.

Solar adds no value to my house. (False)

Multiple studies reveal that solar adds your home anywhere from $3.50 to $6.00 in value per watt. So in other words, a 10 kw system could mean an additional $35,000 to $60,000 value increase to your home depending on the market.

How much does it cost to install solar?

Every case is different because every house and family composition is different. Multiple factors will affect the cost of a solar system, like for example:

• location,
• usable size of the roof,
• age and type of roof,
• direction (a south facing roofline is prime for solar),
• unobstructed sunlight (shade will significantly reduce energy production),
• pitch or roof inclination,
• existing electrical structure and condition,
• family composition and energy usage,
• equipment used,
• form of payment,
• interconnection arrangement with your utility company,
• available local rebates and Federal Tax Incentives.

How can I know how much a solar system will cost me?

The best way to know exactly what is the best solar solution for you and if your home even qualifies for solar, is by getting a Solar Expert to guide you through the steps of assessment of your property, energy consumption, future plans, system design and loan choice. Our goal is to educate you on the benefits of solar — and if you qualify, help you design and acquire the right solar system for you and your family.

Will I still have an Electricity Bill from my Utility after going solar?

Yes, most of our customers will still pay a vastly reduced Electricity Bill to their Utility in addition to their monthly solar loan payment. Sometimes throughout the year, during excessive heat or cold seasons, homeowners consume more electricity than the solar system generates, therefore, you will still owe your utility for that excess consumption. However, in most cases, the solar system generates more electricity than you use, so depending on the type of energy interconnection agreement offered in your region, you may be eligible for credits from your Utility Provider.

What is the Federal Investment Tax Credit (ITC) and how does it work?

The ITC is a 30% federal tax credit for solar systems purchased and installed on residential properties. This will reduce to 26% starting on installations completed after January 1, 2020 and good until December 31, 2020. As the owner of the solar energy system, you are eligible to apply the credit as a dollar-for-dollar reduction in the federal income taxes that you owe in the year that you purchased your solar system. If the ITC granted for your solar system is greater than your tax liabilities in the year that you purchased your solar energy system, you may be able to apply the remaining ITC in the subsequent year. To determine your eligibility for any federal solar investment tax credit, you should make an independent assessment or consult with your tax advisor.

How is my loan term structured?

Our solar loans are structured to give you the benefit of paying down the 26% Federal Investment Tax Credit into your loan, so that your initial 18 monthly payments are kept low. After month 18, your loan will re-amortize, and your new monthly payment will be adjusted so your loan is fully repaid by the end of your term. There are 3 scenarios for your new monthly payment:

• If you pay down your loan 30% by month 18, your monthly payment will remain approximately the same throughout the life of your loan.
• If you do not pay down your loan 26% by month 18, your new monthly payment will be higher than your initial monthly payment.
• If you pay down your loan by more than 26% by month 18, your new monthly payment will be less than your initial monthly payment.

Home Sale/Refinance

Solar loans place a lien on the home. (FALSE)

Your Solar Loan is secured through a lien on the solar equipment itself, (NOT on the property) by filing a UCC-1, or Uniform Commercial Code Financing Statement, and county fixture filing. Again, the filings are NOT a lien against your home, so the lender will never hold any formal position in your home (first, second, or otherwise). You will, however, find a UCC-1 fixture filing on the title of your property. The lender will file UCC-1 and county fixture filings to protect their rights as the financier of the system. If for whatever reason your mortgage on the real property forecloses on your home, the UCC-1 filing protects their security interest in the system, while preventing your mortgage lender (if different) from taking ownership of it.

If I want to sell my home, what can I do with my solar loan?

There’s two different options:

In most cases, homeowners pay off the remaining balance of the solar loan through the sale of their home.

However, if the new homeowner wishes to assume the loan, he/she must apply to qualify for a loan for the remaining balance. If approved, then he/she will assume full responsibility of the loan thereafter. If he/she is not approved, then you must pay off the remaining balance of the loan upon closing of the sale.

Can I roll my solar loan into my mortgage?

Our lender’s Mortgage Division can offer you very competitive interest rates on your mortgage. Because mortgage interest is tax deductible, most homeowners can see significant savings by refinancing and paying off their solar loans with their mortgage. To understand the benefits of rolling your solar loan into your mortgage, please call one our lender’s specialists at: 844-562-6725 or visit www.loanpal.com