Full Title: Residential Solar Photovoltaics: Comparison of Financing Benefits, Innovations, and Options
Author(s): Bethany Speer
Publisher(s): National Renewable Energy Laboratory
Publication Date: October 1, 2012
Full Text: Download Resource
Description (excerpt):
This report examines relatively new, innovative financing methods for residential photovoltaics (PV) and compares them to traditional self-financing methods. It provides policymakers with an overview of residential PV financing mechanisms, describes relative advantages and challenges between the various financing mechanisms, and analyzes differences between them where data is available. Because these innovative financing mechanisms have only been implemented in a few locations, this report can help enable their wider adoption.
The financing mechanisms currently available to homeowners are grouped into three categories: (1) traditional self-financing, (2) third-party ownership options, and (3) utility and public financing. Self-financing options are widely available across the United States. They include cash purchases, home equity loans (HEL), home equity lines of credit (HELOC), and cash-out mortgage refinancing (COMR). Power purchase agreements (PPAs) and solar leases are the two private sector third-party ownership options. State and local governments and utilities provide a variety of financing options, with the three primary prototypes being utility financing, public loans (i.e., credit-enhanced and revolving loans), and property assessed clean energy (PACE) financing. Although the focus of this report is financing options for PV, many of these financing options may also be used to procure other types of residential renewable energy or energy efficiency improvements.