Use caution when considering loans for energy efficiency upgrades. Two Reasons. Here’s why:
1) Think about it for a minute. Have you seen 20 year old satellite dishes? Yeah, technology changes. I don’t know that your “new” solar panels are going to look the same as solar panels 20 years from now. If it’s a personal loan, do you want to be stuck with it after you sell?
2) Many times, the loan for the energy efficiency upgrades stays with the property instead of you as a person. Sounds better, right? In this case, let’s say you get a 20 year loan against the property for solar panels. What happens when you want to sell the property? The loan stays with the house. Sounds great, right? It’s not. Now, the new buyer will need to qualify for the solar panel payments in addition to their loan to buy the property. Also, they’ll be stuck with the solar panels on the house. What if they don’t want them? What if the additional loan payment is just enough to push them over the edge to not qualify to buy your property?
It can get messy quickly when dealing with loans. Before you sign on the dotted line, let’s walk through the options to see if it makes sense. (206) 293-1005 or Jen@HudsonCREG.com.