A New Way to Finance Solar Panels on Long Island

Long Island residents now have a new way to pay for solar panels on their houses.
Long Island residents now have a new way to pay for solar panels on their houses.

Homeowners on Long Island now have another way to pay for energy improvements to their property, including rooftop solar panels, after PSEG-Long Island agreed earlier this summer to participate in “on-bill financing” for energy improvements.

The repayment terms would be based on the projected energy savings of the home improvement.

The New York State Energy and Research Development Agency (NYSERDA) is sponsoring the on-bill recovery loan program, which has already been rolled out in neighboring states, and has been eagerly anticipated by the solar industry here for several years.

In order to participate in the program, homeowners need to first receive a comprehensive home energy assessment from a BPI-accredited contractor to determine the most effective methods of reducing their energy costs.

For residential customers, loans are available for up to $13,000, or up to $25,000 with higher cost-effectiveness standards, with repayment periods of 5, 10, or 15 years. The interest rate is currently 3.49 percent and the monthly payment may not exceed the estimated energy cost savings, meaning the price of the energy you’d save by making the improvements should cover most or all of your loan payment.

The loan payments will appear as a separate line item on energy bills and are transferable if the property is sold.

For small business and nonprofit organizations, loans of up to $100,000 at half the market interest rate and on-bill recovery loans of up to $50,000 at 3 percent interest are available, with repayment periods of up to 10 years.

For more information, call 1.800.361.5663 or access the application online here.

 



Beth Young

Beth Young has been covering the East End since the 1990s. In her spare time, she runs around the block, tinkers with bicycles, tries not to drown in the Peconic Bay and hopes to grow the perfect tomato. You can send her a message at editor@eastendbeacon.com

One thought on “A New Way to Finance Solar Panels on Long Island

  • August 19, 2014 at 11:11 am
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    NET METERING & using electric produced to pay off the loan is the key to get more people on board with renewable energy for their homes.
    This same program is up and running big time in western Mass. and gaining credence in Vermont where I just spent two weeks.
    We should let our legislators know we support this !

    Reply

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