Tag Archives: Financing

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Fannie MAE and Freddie MAC attack on solar energy program

On Tuesday, Fannie Mae and Freddie Mac ended their radio silence nine weeks after sending cryptic letters warning lenders against permitting the use of Property Assessed Clean Energy (PACE) — but it wasn’t the follow-up PACE advocates were hoping for.

That’s how Grist writer Jonathan Hiskes began his article about the document posted below: a “clarification” of the quasi-governmental home mortgage programs’ position on how to deal with PACE-financed solar homes.

Fannie and Freddie’s official position is, in a word, “Don’t.”

New rules: A little upside, a lot of downside

Rooftop solar panels

There’s slightly more to it, but nothing that changes the thrust of their earlier warnings. The only upside in the new letter is the part that grandfathers in existing mortgages for homes with PACE-financed solar panels. Several advocates of PACE financing have been working to keep the successful program alive within Fannie and Freddie, including the Vote Solar Initiative. Hiskes reviews some of those efforts in his Tuesday article.

For now, however, the outlook for the very successful program does not look good. With financing being the major hurdle to homeowner adoption of clean renewable energy such as solar, a blow to PACE is a blow to a clean energy future.

FHFA & PACE -





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American Solar Electric adds leasing program

American Solar Electric (ASE) has joined SolarCity in offering a leasing program for residential customers. The upfront cost of going solar has been a major roadblock (sunblock?) for households wanting to install rooftop PV systems. The price of a typical residential array starts at around $20,000 and ranges up to $50,000 depending on the amount of electricity produced.

Phoenix-based ASE works with SunRun, a solar leasing company in California started in 2007. In November 2008, SunRun announced that US Bancorp had committed $105 million to the company’s growth.

Fireitup will report on the details of the lease when we receive a copy, but according to ASE and SunRun, the 18-year leases include design, installation, monitoring, insurance and maintenance and repair.

Of course, since you don’t own the system, all tax-credits and incentives (federal, state and utility) go to ASE/SunRun, not to you. On the other hand, companies couldn’t offer a leasing programs like this without some way of recouping the initial, and expensive, start-up costs..

Reaping the benefits of a rooftop solar power system for just $1,000 down sounds like a great deal. And it may be — depending on the circumstances of the individual homeowner.

But, as always, it’s important — make that imperative — to look at the fine print of this and any other agreement before signing.

In an upcoming installment, Fireitup will be taking a look at the details contained in different leasing and purchasing agreements.

For now: We’re just glad there’s another option for expanding renewable energy in the Valley.