Ygrene Energy Fund financing: The complete review

Thanks to the expansion of solar financing options, it's easier than ever for homeowners and businesses to buy and install a solar panel system. Across the country, more than half of all new solar installations are bought in cash, with a solar loan, or through a specialty financing option.

Ygrene Energy Fund is one of the leading providers of Property Assessed Clean Energy (PACE) financing in the country and operates in California, Florida, and Missouri. If you're comparing quotes for solar installations or other home energy upgrades from different contractors, you may have seen a financing option from Ygrene before.

Solar shoppers typically have a few options to finance their solar panel installation. Those less concerned about maximizing their financial savings or lacking the annual income to benefit from the solar tax credit may sign a solar lease or power purchase agreement (PPA) with a solar company. Homeowners who want to access the higher financial benefits of owning the system outright typically buy it in cash, with a solar loan, or with PACE financing. While solar loans can come from a bank or a specialized solar lender, PACE is only available in states and cities that have approved this new financing product.

Ygrene offers Property-Assessed Clean Energy (PACE) financing that can be used to finance solar installations and energy improvements in California, Florida, and Missouri. Their financing option is popular for homeowners comparing quotes on the EnergySage Marketplace.

Ygrene PACE financing is offered to homeowners primarily through their network of solar installers and contractors. When your installer or contractor compiles a quote for your home, they often include a built-in financing option from a company like Ygrene (note: when you join the EnergySage Marketplace, you can indicate a preference for their financing option during registration).

Ygrene offers a special type of financing known as Property Assessed Clean Energy, or PACE. PACE financing, in general, and Ygrene's product, in particular, may look a little different from a standard loan.

PACE financing is repaid through annual property taxes rather than a monthly payment. Typically, costs are spread out over 20 to 30 years. With PACE financing, homeowners generally are cash flow positive from day one because they see the financial benefits of solar for months before their first payment (via property taxes) is due.

PACE financing isn't restricted to home solar. As the name applies, it can be used for various home energy upgrades, including replacing your heating and cooling system, upgrading insulation, or new windows and doors, among other projects.

Financing amounts and terms

Ygrene's financing terms range from 5 to 30 years (Note: the maximum term is set by state law, and some states limit the maximum term to 20 years). According to solar quote data on the EnergySage Marketplace, the most popular option is the 15-year financing term. The company provides financing for projects as small as $2,500 and up to millions. You can easily cover the cost of a solar installation with Ygrene's PACE financing.

PACE financing interest rates

Interest rates on Ygrene financing options will vary based on the customer. Options offered to EnergySage users often have interest rates ranging from 4.99-8.49%. (Note: all interest rates are subject to lender approval.)

Other Ygrene financing options: home batteries, electric vehicle charging, and whole-home energy efficiency

In addition to financing for solar panel systems, Ygrene offers financing options for other home energy upgrades, including home batteries, electric vehicle charging, water conservation, and energy efficiency improvements.

As mentioned above, homeowners have a few different sources of financing for their solar projects. EnergySage solar shoppers who finance their purchase will typically choose a loan from a traditional bank, a specialized solar lender, or a PACE financing company like Ygrene. The type of financing product you choose depends on your priorities.

Solar is a relatively new technology, and some traditional banks may hesitate to provide financing for it. While this is less of an issue than it was a few years ago, the fact remains that a company like Ygrene that specializes in lending for home energy improvements will be prepared with answers to any solar lending-related questions you might have.

As long as you have at least 10 percent equity in your home, are current on your mortgage payments, and aren't bankrupt, you're a good candidate for PACE financing from Ygrene. Borrowers with lower credit scores often prefer PACE financing, as the lending is tied to the property rather than the individual's credit history.

Additionally, unlike traditional loans, PACE financing is "off-balance sheet," which means that it won't prevent the property owner from being able to borrow additional funds for other purposes. It also won't impact borrowers' credit scores.

In some cases, PACE financing can make it more difficult to refinance your mortgage because of how the financing is structured. If you're considering refinancing, be sure to talk with your existing bank or mortgage provider before making a final decision on the loan you choose.

Many of the 500+ local installers who provide solar quotes on the EnergySage Marketplace use Ygrene as their financing provider. If you're a homeowner or business owner in California, Florida, or Missouri and are interested in financing from Ygrene, join EnergySage today and indicate Ygrene as your preferred choice when registering your property.