You can get a home equity loan or home equity line of credit (HELOC) from your preferred bank. These are home improvement loans that allow you to borrow against your home’s equity. If approved, a home equity loan gives you a lump sum that you repay in equal installments over a set period of time, while a home equity line of credit gives you revolving credit that you can borrow against (up to your limit) and reuse as you pay it back (like a credit card).
Home equity loans typically offer lowest rates and tax-deductible* interest payments*. Banks and credit unions offer home equity lines of credit and check with your financial institution on their terms and conditions.
StraightUp Solar treats home equity loans like cash without any extra charges on our end, as we do not have to provide the financing product. You may encounter additional fees and loan processing payments from your bank though, so factor that into your decision-making process.
* Always contact a trusted tax professional to verify eligibility in your specific case.
Property Assessed Clean Energy (PACE) is a financing mechanism for Missouri homeowners approved by the Missouri General Assembly in 2010. PACE allows homeowners to pay for the solar array by taking a loan against the home and property as opposed to the individual. The loan is paid back through a special property tax assessment which can be covered in monthly payments via an escrow account (if the home is still under mortgage). The voluntary property tax assessment stays with the home and property and can run for up to 20 years. Advantages to PACE financing include; potentially no money down, 100% financing and reasonable interest rates.
This voluntary assessment is secured by a senior lien on the property which provides debt collateral in the event a property owner defaults on the assessment.
It is important to note that while PACE does not increase your property taxes themselves, it increases the bill that is sent to you by the assessor until the solar PV system is paid off. The local government pays the financing institution that offered the loan to support the PACE financing. The benefit of this financing is that the loan stays with the home. When the resident that installed solar moves out the new resident continues to pay for the solar array via the property tax assessment.
