How to Finance Solar Energy in the US

Apply for federal grants and incentives. The U.S. Department of Agriculture, Department of Energy and Department of Housing and Urban Development all provide different types of grants for homeowners and businesses willing to invest in renewable fuel sources like solar energy.

Choose a solar system eligible for grant money that is compliant with federal and state regulations. These eligible systems also may include photovoltaic systems if allowed by program requirements.

Apply for rebates, tax credits and other types of incentives and credits for investing in solar energy. Incentive programs vary by state. Federal programs are considered frequently by Congress, and the U.S. Environmental Protection Agency and Department of Energy at certain times have offered tax credits of up 30 percent of investment cost.

Take a loan. The Federal Home Mortgage Loan Corp., also known as "Freddie Mac," and other public and private organizations offer low-interest loans to homeowners interested in investing in solar energy systems. Most solar energy financing programs require you to pay a percentage of the initial cost to qualify for grants and tax incentives.

Save money and make a profit. Electricity you generate is electricity you do not have to buy. Also, sell surplus electricity back to the grid. As a producer of energy, you can pay off the initial investment, cover maintenance costs, and even generate a tidy profit.