Alternative housing energy and financing

In summary, there have been cases where banks have been hesitant to finance homes with alternative power sources, such as solar electric, due to potential issues with the design and structure of the home. It is unclear if this is a common issue or only specific to the US, and the only way to know for sure is to directly ask the bank in question.
  • #1
DocToxyn
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I have some friends that are house shopping and they found a really interesting home with many normal aspects except that it also has solar electric. They were told (unknown source) that they might have problems with bank financing because of this. I also have some other friend who recently built a house and were looking into alternative power ideas, but again, the banks would not back these options.

Does anyone have experience with this? Is it true, is it only a US thing? Any theories as to why they won't promote alternative power?

Note: I'm not trying to start a debate about benefits of energy source X vs Y, just trying to find out if these cases are the norm.
 
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  • #2
It's probably the roof. If not properly designed, a solar array on the roof causes leaks and compromises structural integrity. And "properly designed" means the roof was designed with the intent of putting a solar array on it, not that it was just added later, which I suspect, is how most are done.

I doubt it would have anything to do with the actual technical/financial feasibility of the array. Afterall, that $20,000 granite and brass kitchen doesn't pay for itself either.

And not to point out the obvious, but the only way to know for sure if they'll have problems getting financing from the bank is to ask the bank.
 
  • #3


I cannot speak to the specific experiences of your friends or the policies of individual banks. However, I can provide some insight into the potential reasons behind banks' hesitation to finance alternative housing energy options.

One possible reason is that alternative energy sources, such as solar power, can be more expensive to install and maintain compared to traditional energy sources. This may make banks hesitant to provide financing for fear of the borrower defaulting on the loan.

Another factor to consider is the reliability and consistency of alternative energy sources. Solar power, for example, is dependent on weather conditions and may not be able to consistently provide enough energy for a household's needs. This uncertainty may make banks less willing to take on the risk of financing alternative energy options.

Additionally, banks may have stricter regulations and guidelines for financing homes with alternative energy sources, which could make the process more complicated and time-consuming for borrowers.

It is also possible that the lack of widespread adoption and understanding of alternative energy sources may make banks hesitant to promote them as viable options for housing. Without a strong demand for these options, banks may not see the financial benefit in promoting them.

Overall, it is important for individuals to thoroughly research and understand the financial implications of alternative housing energy options before making a decision. It may also be helpful to speak with multiple banks and compare their policies and willingness to finance alternative energy options.
 

1. What is alternative housing energy?

Alternative housing energy refers to various methods and technologies used to power homes and buildings, such as solar, wind, geothermal, and biofuel energy. These methods are considered alternative because they are renewable and have a lower impact on the environment compared to traditional energy sources like fossil fuels.

2. What are the benefits of using alternative housing energy?

The use of alternative housing energy can have many benefits, including reducing carbon emissions, decreasing reliance on non-renewable resources, and lowering energy costs in the long term. It can also increase energy independence and reduce the effects of climate change.

3. How can I finance alternative housing energy systems?

There are various ways to finance alternative housing energy systems, including government incentives, loans, and grants. Some utility companies also offer rebates or financing options for homeowners who install renewable energy systems. It is important to research and compare different financing options to find the best fit for your specific situation.

4. What are the limitations of alternative housing energy?

Alternative housing energy systems may have some limitations, such as high upfront costs for installation, variability in energy production depending on location and weather conditions, and the need for proper maintenance. Additionally, some alternative energy sources may not be suitable for all types of homes or buildings.

5. How can I determine the best alternative housing energy option for my home?

The best alternative housing energy option for your home will depend on factors such as your location, climate, and energy needs. It is best to consult with a professional to assess your home's energy usage and potential for different alternative energy sources. Consider also researching and comparing the costs and benefits of different options to make an informed decision.

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