- Category: Finance
- 08 Jul 2009
- Published on Wednesday, 08 July 2009 07:08
- Hits (936)
A solar power installer for California and Oregon said its new financing program for customers does away with one of the biggest barriers to solar energy adoption—system upfront cost.
In a press release, SunWize Residential Power Systems said its program is designed to make residential solar power installers benefit from a 30% federal tax credit for residential solar energy systems.
In SunWize’s program, homeowners can get a same-as-cash loan of up to $45,000 with no collateral. There will also be no principal payments or interest for up to 12 months.
The idea, based on the SunWize’s statement, is for residential solar energy systems to be provided with sufficient time to be eligible for the 30% federal tax credit.
The Energy Improvement and Extension Act of 2008, which is part of the US’s $700-billion economic stimulus program when its finance sector broke in September last year, entitles buyers of residential solar electric systems to a tax credit of up to 30% of the net installation cost.
But homeowners, SunWize said, will not realize the tax savings until 2010 when they file their 2009 taxes.
“SunWize customers who participate in the residential solar financing program have up to 12 months without payments or interest accruing, during which they can realize the tax credit and apply it toward the loan,” SunWize stated.
SunWize is a subsidiary of the US branch of Japanese Conglomerate Mitsui & Co., Ltd., one of the world’s largest trading companies, and is currently the premier installation division of SunWize Technologies, Inc. It was founded in 1992.
- Eric Dorente