New England Clean Energy has just announced a new “combo loan” that finally makes owning solar panels an affordable proposition. There is a 12-month 0% loan for the amount of the federal tax credit. And then a 12-year 2.99% loan for the balance. Payments don’t start until 30 days after the system is turned on.
For a 5-kW system costing $25,000 with the moderate home value adder (so $4,000 from the Commonwealth Rebate), you would need to finance $13,700 long-term which works out to a $113.34 monthly payment. Electricity savings should amount to about $80 a month so this would only cost you an extra $33 monthly (or $400 per year) before any SREC income. A 5-kW system will generate around 6 SRECs annually, which should amount to at least $1,200, even at today’s oversupplied prices.
That works out to a net $800 in positive cash flow annually. That’s a great deal for solar panels that produce 70% of your electricity and increase the value of your home by almost $20,000. There is no prepayment penalty and the loan is unsecured.
Plus, by getting your New England Clean Energy estimate through my ratings page, you can save an additional $125.
Here is a link to their full press release.