Can You Install Solar Panels on a Manufactured Home? Financing Options and Key Considerations

Last Updated on February 16, 2025 by Ian Golightly

Can You Put Solar Panels on a Manufactured Home?

The idea of installing solar panels on a manufactured home is appealing, especially as homeowners look for ways to cut energy costs and embrace sustainability. However, unlike traditional site-built homes, manufactured homes come with unique challenges when it comes to solar panel installation. The first factor to consider is the structural integrity of the roof. Many manufactured homes have lightweight roofs that may not be designed to handle the additional weight of solar panels. In such cases, homeowners need to explore alternative solutions, such as ground-mounted panels or installing them on a nearby sturdy structure, like a garage or carport.

Another critical consideration is whether the home is classified as real estate or personal property. This distinction affects financing options, eligibility for tax credits, and even the ability to connect to the local power grid. If the home is permanently affixed to the land, it may qualify as real estate, making it easier to access financing for solar installation. On the other hand, homes classified as personal property may require different funding routes, such as personal loans or solar leasing programs.

How Do Solar Panels Impact Financing?

Financing a solar panel system on a manufactured home isn’t as straightforward as it is for a traditional home. The type of mortgage or loan tied to the home determines the financing options available.

For those with FHA-backed loans, the home must meet specific criteria to qualify for solar panel financing. FHA requires manufactured homes to be placed on a permanent foundation and classified as real property. If these conditions are met, homeowners may be able to roll solar installation costs into their mortgage through FHA’s Energy Efficient Mortgage (EEM) program, which allows borrowers to finance energy-saving upgrades.

For homeowners with conventional loans, financing solar panels can be more flexible, especially if the home is permanently affixed to owned land. Lenders typically view these properties similarly to traditional homes, allowing borrowers to access home equity loans or refinancing options to fund solar panel installation.

On the other hand, those with chattel loans, which are common for manufactured homes located in leased-land communities, face more challenges. Chattel loans treat the home as personal property rather than real estate, which means traditional home improvement loans may not apply. However, solar leasing, power purchase agreements (PPAs), or unsecured personal loans can still provide viable paths to solar adoption.

What Are the Financing Options for Solar Panels?

Given the unique financing challenges for manufactured homes, several alternative funding methods are available. Solar loans are one of the most accessible options, as many lenders specialize in financing solar panel systems. These loans often have competitive interest rates and repayment terms similar to home improvement loans. Some solar companies even offer financing directly through third-party lenders.

For homeowners who own both their manufactured home and the land it sits on, a home equity loan or home equity line of credit (HELOC) can be a cost-effective way to pay for solar panels. These loans typically have lower interest rates compared to unsecured personal loans.

Another alternative is solar leasing or power purchase agreements (PPAs), where a homeowner rents the solar panels from a company and pays a fixed monthly fee for the electricity generated. While this option eliminates upfront costs, it also means the homeowner won’t qualify for federal tax credits or increase the value of their property with an owned system.

Speaking of tax benefits, the federal Investment Tax Credit (ITC) is a significant incentive for homeowners who purchase and install solar panels. The ITC currently offers a 30% tax credit for systems installed between 2022 and 2032, with phased reductions beginning in 2033. Additionally, some states provide extra rebates and incentives, making solar more affordable.

Benefits of Solar Panels on a Manufactured Home

The advantages of solar panels extend beyond just environmental benefits. One of the most immediate and noticeable perks is the reduction in electricity bills. By generating their own power, homeowners can significantly cut or even eliminate their dependence on the grid, leading to long-term savings. This is particularly beneficial for manufactured homes, as they are often located in rural or remote areas where electricity costs may be higher.

Solar panels can also increase the resale value of a home, making it more attractive to potential buyers. Studies show that homes with solar energy systems tend to sell faster and at higher prices than those without. However, this benefit is most applicable to manufactured homes classified as real estate rather than personal property.

Another major advantage is energy independence. Homeowners who invest in solar panels, especially those with battery storage systems, can reduce their reliance on utility companies. This can be particularly useful in areas prone to power outages or extreme weather conditions.

What Are the Downsides of Installing Solar Panels?

Despite the many benefits, there are some potential drawbacks to installing solar panels on a manufactured home. The most obvious challenge is the structural limitations of the roof. Since many manufactured homes are built with lightweight materials, they may not be able to support the weight of traditional solar panels. Homeowners may need to reinforce their roofs or explore alternative mounting solutions, both of which add to the overall cost.

Financing is another potential hurdle. While there are multiple options available, some loans and incentives may not be accessible to homeowners with chattel loans or those who lease their land. Additionally, homeowners must consider the upfront cost of solar panel installation. While tax incentives and financing options help, solar systems still require an initial investment that may not be feasible for all budgets.

Another concern is limited roof space. Manufactured homes often have smaller roofs compared to site-built homes, which can restrict the number of panels that can be installed. This means some homeowners may not be able to generate enough power to meet all their energy needs.

What to Consider Before Installing Solar Panels

Before committing to a solar panel installation, homeowners should evaluate several key factors. The condition and strength of the roof is the first thing to assess. If the roof is too weak or small, alternative mounting solutions will be needed.

Homeownership status is another crucial consideration. If the home is located in a mobile home park or on leased land, the landlord’s permission may be required before installation. Additionally, some parks have restrictions on modifications to the property, which could impact the feasibility of solar panels.

Homeowners should also research local incentives and rebates, as these can significantly reduce costs. Many states and utility companies offer additional financial assistance for solar installations, making it easier to break even on the investment sooner.

Finally, homeowners must decide whether to stay grid-tied or go off-grid. While a grid-connected system allows excess power to be sold back to the utility company, an off-grid setup requires battery storage to provide electricity when the sun isn’t shining.

Final Thoughts

Installing solar panels on a manufactured home is entirely possible, but it requires careful planning and consideration. Homeowners must navigate structural limitations, financing hurdles, and ownership status to determine the best approach. While challenges exist, the benefits of lower energy bills, increased property value, and environmental sustainability make solar panels a worthwhile investment. With the right financing and installation method, manufactured homeowners can harness the power of the sun to create a more energy-efficient and cost-effective living space.

 

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