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Reverse Mortgages Help Seniors Make Their Golden Years More Golden with the Installation of a Solar Power System

With electricity rates rising dramatically in response to accelerating oil and natural gas prices, nice-clean-image-of-solar-panels-on-a-two-story-homeseniors can use reverse mortgages to save on their electric bill and stabilize their household budget.  Volatile electricity bills can blow the top off the average senior’s fixed income budget.  Southern California Edison, the largest electricity provider in California, has requested a 25-30% price increase this year alone.  By installing a solar panel system utilizing photovoltaic technology, a homeowner’s electricity bill can be greatly reduced or eliminated altogether. 

 

With a reverse mortgage, seniors can generate much needed cash while reserving the right to remain in their home until they die without having to make any payments to the bank. Many seniors qualify for reverse mortgages of between $200K and $300K.

 

“If a senior qualifies for a $250K line of credit via a reverse mortgage, that individual could take an estimated 10% of the amount and purchase a solar system for his home,” said Scott Gordon, Director of Residential Sales for HelioPower, a leading solar panel installation company in California.  “This is smart since most seniors live on a fixed income and their electric bill represents a highly inflationary monthly expense. Since there is no obligation to pay the loan back, buying a solar system with a reverse mortgage is cash flow positive day one and thus frees up other income otherwise dedicated to paying for electricity.”

 

Additionally a solar panel system adds value to the home the day it is turned on! According to the Appraisal Journal, a home’s value is increased by $20,000 for every $1,000 reduction in operating (energy) costs. Money saved from the reduction in energy costs can be spent on a larger mortgage or home, with no net change in the monthly cost of owning the home. In addition, the resale value of adding a solar system can be the highest of all possible home improvements. For more information click here.

 

You can calculate how much money a solar power panel system will save you by clicking here.

3 Comments

  1. John on August 23, 2008 at 11:06 am

    How can anyone expect to keep up with up to 20% increases. Any tips for saving? I found http://www.helppayingutilitybills.com has some ways to get aid and money, but looking for more advice on just getting my bills to go down. Also, aren’t solar panel still too expensive…too high up front costs?



  2. glenna on September 2, 2008 at 9:40 am

    Hi John:
    Thank you for visiting our blog. Recently our director of sales, Scott Gordon, did an extensive post on how he saved money in his home in Southern California before adding a solar power panel system on his home. He saved tons of money on his electric bill, then was able to purchase a much smaller solar power system to cover the rest. Here is the link to his post: http://blog.heliopower.com/2008/06/how-to-save-fortune-on-your-solar/

    Please feel feel to email us with any further questions. My email is [email protected]. Thank you as well for sharing the link to assistance with paying utility bills.

    Glenna Wiseman, Editor



  3. Scott Gordon on September 3, 2008 at 1:13 pm

    If you qualify for a reverse mortgage, you can completely eliminate your electric bill with no monthly cost to you. The cost of the solar system is rolled into the reverse mortgage and doesn’t need to be repaid until you die or until you sell the house. It’s a really good deal for those who qualify.