Low-Interest Loans for Solar Water Heaters

The Kentucky Solar Partnership (KSP) and the Mountain Association for Community Economic Development (MACED) are partnering to offer low interest loans for the installation of solar water heaters. Loans cover the full equipment and installation cost. Interest rates are fixed at 6.0%. All loans are to be repaid in monthly installments, with a fixed term of six years.

Who can apply?
Residents and businesses in Eastern Kentucky are
eligible to apply. A credit check is required before
final loan approval. Click here to see a map and list
of the 51 counties in MACED’s service area.

What does a solar water heater cost?
Installing a residential solar water heater in Kentucky will typically cost $3,000 to $6,500 and will save a family about $150 to $400 or more per year on their utility bills. The price range for installing a system depends on the amount of hot water used each day, whether a new water storage tank is required, the size of the home, whether the system is installed by the homeowner or a professional contractor, and other factors.

Click here for an illustration of how much money a typical family spends just to heat water, and how much can be saved by using a solar water heater. Actual financial savings will depend upon the type of fuel used by the conventional water heater, the cost of fuel or electricity, the amount of hot water used in the home, and other factors. As energy costs rise, financial savings will increase as well.

Higher loans for larger solar water heating systems (such as those used for radiant home heating or commercial uses), will be evaluated on a case by case basis."

How can I apply?
Download a copy of the loan application and follow
the instructions. The process begins with a solar site
assessment to determine if your home is suitable
for a solar water heater—most homes are, but it’s
important to make sure before you buy a system.
Contact a solar water heater installer and ask them
to conduct a site assessment (to find a qualified
installer in your area, refer to our list of SWH
installers). If your loan application is accepted, the
cost of the assessment can be included in the loan.
If the loan is declined, KSP will reimburse you for
the cost of the assessment (up to $50).

Solar Water Heater Loan Program Documents
Loan Application (PDF)
Site Assessment Form (PDF)
Installation Checklist (PDF)