For some time, leasing has been the typical method for financing solar installations, but Admirals Alternatives believes direct ownership of these systems is the future of this industry.
Admirals Alternatives, a division of Admirals Bank that focuses on residential renewable energy lending, has created a line of innovative solar energy loans that have helped thousands of homeowners across the U.S. own their renewable energy systems.* This pioneering division has announced the launch of an online resource to assist solar contractors in promoting and streamlining financing for homeowners looking to purchase these systems. This resource includes an online pre-qualification tool, a customer referral tool and marketing materials that can be used to provide homeowners and integrators with information regarding the loan programs.
Nicholas W. Lazares, Chairman and Chief Executive Officer of Admirals Bank, stated, “Education on both sides of the equation is the key to success. Homeowners need to understand the benefits of owning solar systems and integrators need to know that Admirals Bank has simplified the sales process.”
The benefits of owning a renewable energy system far outweigh the benefits of a lease or a power purchase agreement (PPA). Under the American Recovery and Reinvestment Act of 2009, homeowners are eligible for a federal personal income tax credit up to 30% of the purchase cost of their renewable energy system, without a maximum limit.** Homeowners can utilize the incentive money in any way they choose. But homeowners that choose to lease their systems turn over their rebates and incentives to the third party lease or PPA companies associated with the solar systems installed on their homes.
The owner of a renewable energy system is also sheltered from rising electricity costs, which have historically increased on average of 3-5% each year. This presents homeowners with opportunities to save money each month on energy and also reduces their reliance on third-party utility companies. By purchasing a renewable energy system with cash or through a loan, a homeowner can completely pay off his or her system and then independently produce clean energy. By choosing a lease or a PPA option homeowners are essentially substituting their utility companies with third-party leasing companies. Additionally, homeowners will likely be required to purchase their systems, renew their leases, or have the systems removed from their roof and revert to paying utility rates once their leases have ended.
The introduction of solar loan programs is influencing the purchase decisions of homeowners across the United States. Generally solar is purchased with cash, a lease or a PPA, or a loan. The average cost of these systems ranges from $20,000 to $40,000. Home Equity loans have been difficult to obtain and without the available funds upfront homeowners are inclined to shop around for the easiest option that provides them with the most comfortable monthly payments. Until recently, the lease was the option of choice.
The loan programs designed by Admirals Alternatives allow homeowners to apply any rebates and/or incentives they may receive to the principal balance of their loan. If they choose this option, they are then given the opportunity to re-amortize their loan at no cost to lower their monthly payments. These loan programs can also be used toward the purchase of energy efficiency products such as energy efficient windows and doors, water heating, ventilation, insulation, geothermal products and much more. Leasing programs do not offer these additional energy saving products.
Mr. Lazares concluded, “Like a lease, Admirals Alternatives loan products allow homeowners to maintain comfortable monthly payments for renewable energy systems. The critical difference is, however, that homeowners choosing our loan options will own the system and receive all of the benefits of direct ownership instead of handing them over to someone else.”
For more information regarding Admirals Alternatives please visit admiralsbank.com/renewables or call 800.769.8472 to speak with a Relationship Manager today.
This press release is presented without editing for your information. MOTHER EARTH NEWS does not recommend, approve or endorse the products and/or services offered. You should use your own judgment and evaluate products and services carefully before deciding to purchase.