If you haven’t been following our series on financing resources for installing solar energy systems in San Diego, check these three previous articles that discuss the topic. This time, let’s look at unsecured financing options, which don’t require collateral from the borrower to get approved for a loan.
Here are three of the most common choices in terms of unsecured financing for solar energy systems within the San Diego area:
Fannie Mae Energy Loan
This consumer loan program, loosely called an “Energy Loan”, can finance energy improvement projects by homeowners for up to $20,000. It offers one of the simplest loan schemes in the country, by using simple interest and a fixed rate for loans. Compared with other standard bank financing options, the Fannie Mae Energy Loan is available for longer payment terms. Best of all, this loan does not require you to put a lien on your house.
San Diego Home Energy Upgrade Program
The city of San Diego has collaborated with the San Diego Metropolitan Credit Union (SDMCU) to offer affordable payment schemes for homeowners who desire to implement energy improvements in their houses. The Home Energy Upgrade Program by the city allows San Diego residents to take out low-interest loans of up to $25,000 to do energy system upgrades such as solar panel installation and setup of electric vehicle connection.
Clean Energy Upgrade Financing Program – Assembly Bill X1 14
The California Alternative Energy and Advanced Transportation Financing Authority (CAEATFA) has been authorized by state law to offer a financing program for upgrades related to clean energy use. For this financing program, interested homeowners may apply for a loan to “finance the installation of energy efficiency improvements or distributed generation renewable energy sources,” according to the Assembly Bill web page. This program is sufficiently funded – at up to $25 million – to finance energy-efficient systems in homes.
This now concludes our series on procuring funding for a solar energy system in San Diego. We hope it will be helpful to those looking to get a solar energy system.