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So you’re finally tired of those exorbitant electricity bills, or, you’re catching onto a “greener” way of life. Either way, solar power may have many advantages for you and your home.

There are many obvious positives to using solar power. One is that solar power produces no waste. We all benefit when there are fewer pollutants in the air. The rays of the sun, which are the source of solar power are free, and, without doubt, the sun will rise each morning. In other words, solar power is an absolutely free and renewable energy source. Even local governments are jumping on the solar bandwagon. Perhaps you may have noticed in your local area your state highways using solar powered signs warning of roadwork.

There are initial high costs involved in outfitting your home for solar power but the savings realized over the years will quickly make up for the start-up costs.

The most popular way of harnessing solar power for most homeowners is through the use of solar panels. These solar panels are made up of what are called photovoltaic cells which are able to covert sunlight directly into electricity. These solar panels are placed on the roof of a building. The size of the solar panel is determined by the amount of energy needed. The panels can easily be added onto if needs increase. Some new homes are now being built using these photovoltaic cells as roof tiles.

These solar panels are generally easy to install for most DIY’ers. They require virtually no maintenance, and will last for decades.

There are other ways to take advantage of the sun’s energy. If you are building a new home and have solar power in mind talk with your architect. You can have your new home built facing the sun where it can take full advantage of the energy and warmth. Have large windows installed to take in as much light as possible, especially in winter months when the sun is lower in the sky. Plant trees that will shade your home in the hot summertime.

Some states offer their residents solar energy grants that will repay a portion of the costs associated with installation. These grants give homeowners incentives for solar water and photovoltaic systems, with some refunding up to $5,000.00. Check with your local energy administration bureau.

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Although competition is driving prices down, solar panel systems can require you departing with a chunk of change. Fortunately, the mortgage industry wants to talk to you.

Financing Residential Solar Power

If you are considering improving your home with a solar panel system or the hot new thin solar roofing systems, you need to learn three little letters – E…E…M. EEM stands for energy efficient mortgage. It also stands for avoiding out of pocket costs to improve your home with a solar.

Energy efficient mortgages came to be because of a nudge from the government to lenders in an effort to promote the use of solar energy as a power source. Put another way, the government told lenders to do it and do it now. So, what exactly is an energy efficient mortgage? Glad you asked.

An energy efficient mortgage is a loan that allows you to incorporate the cost of your solar improvements into your mortgage loan. The improvements can cost up to 15 percent of the total value of your home. The lender will calculate the energy savings for you home because of the new solar system and will add that to the total loan value, letting you borrow more than normal. Put another way, it doesn’t matter how much equity you currently have in your home, the solar financing is added on top of the loan. This, of course, lets you get a solar system without much out of pocket expense and you get to recover a good chunk of the cost through an increased mortgage interest deduction. Throw in tax credits, rebates and net metering incentives, and solar is getting mighty cheap if you know how to work the system.

Energy efficient mortgages have very few restrictions. You can get them for new construction or existing homes. The can be issued for single family residents, duplexes, condos and so on.

Frankly, it is a no brainer to go with an energy efficiency mortgage. Ask your lender for more information on the program so you can find out how to profit from a solar improvement to your home.

A brief layout of my solar system that I installed about 2 weeks ago.