Tuesday, March 18, 2008

New Jersey Utilities Financing Solar Installations.

PSE&G to offer solar energy loans

This lends some support to my post in December of last year.

It's a start, at least. I see big new developments coming in the next year as solar supply constraints start to lift.

Remember, financing Energy production is a very safe bet for the lender, as long as the overall price of Energy continues to increase. The installation in many cases essentially pays for itself, so rates of default should be low.

One interesting point is that the utility originally wanted to actually raise the rate charged on this financing, but was forced to accept a lower rate by the State. Personally, I think that increased demand for, and recognition of the safety of, these loans, will eventually drive the costs of these loans down significantly. Of course, the other hand is that it is likely that we'll see interest rate increases across the board over the next couple of years, in order to correct for some of the overall economic issues that we're seeing today.

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