How much money can rolling my solar loan into my mortgage save me?

Monthly savings will vary depending on the terms of your solar loan and your mortgage, but here’s an example:

Jenny Greenhome has a $25,000, 20-year loan at 4.99% interest from Mosaic, which translates into a payment of about $120 per month to cover the cost of her beautiful 4 kW rooftop solar panel installation. Several years ago, Jenny also took out a $250,000, 30-year mortgage at a fixed rate of 4% interest, which translates into a mortgage payment of about $1,193 per month for her home – which is now worth $375,000. So, in this scenario she’s paying a combined $1,313 per month for the two loans.

After hearing about how much she could save by rolling her solar loan into her mortgage, Jenny refinances her home for $275,000 – equal to her previous mortgage plus $25,000 for her solar panels – at the same 30-year tenor at today’s even lower interest rate of 3.5%. After paying off her Mosaic loan, she now has a single monthly payment of $1,235 – a savings of $78 per month, equal to more than two thirds of her previous monthly solar payment!


In addition to her monthly savings, Jenny will pocket additional savings every year when she pays her taxes, since the interest on the added portion of her mortgage dedicated to paying off her solar loan is now tax deductible! 1 

 

Amount of savings due to tax deductions is dependent on your unique financial situation. Please consult a tax professional regarding your eligibility.

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