source:
  type: regulation
  id: hud-4000-1-programs-and-products-solar-and-wind-technologies
  authority: HUD Handbook 4000.1 — Programs and Products - Solar and Wind Technologies (08/19/2024)
  description: "HUD Handbook 4000.1 section \"Programs and Products - Solar and Wind Technologies\". Gap-fill\
    \ (verbatim, title-diff). \n"
obligations:
- id: hud-4000-1-programs-and-products-solar-and-wind-technologies-full
  canonical_id: hud-4000-1-programs-and-products-solar-and-wind-technologies-full
  section: HUD Handbook 4000.1
  description: "Programs and Products - Solar and Wind Technologies: m. Solar and Wind Technologies (08/19/2024)\
    \ \nThe solar and wind technologies policy allows the Mortgagee to increase the Base Loan \nAmount\
    \ to cover the cost and installation of new solar or wind energy system improvements \nmade, or to\
    \ be made, to the Property at the time of a purchase or refinance. …"
  type: do
  tags:
  - regulator-direct
  - section-complete
  - hud
  - 4000-1
  - curated
  primary_source:
    tier: 1
    authority: HUD Handbook 4000.1 — Programs and Products - Solar and Wind Technologies (08/19/2024)
    source_class: hud-handbook-4000-1
    source_url: https://www.hud.gov/hud-partners/single-family-handbook-4000
    snapshot_id: 8c03836f77f317e1
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:411430f29b13f9b54a2ebb0e6f6e7087ecd2b90d0da22eb0c8c792eaa2d7d0df
    paragraph_quote: "m. Solar and Wind Technologies (08/19/2024) \nThe solar and wind technologies policy\
      \ allows the Mortgagee to increase the Base Loan \nAmount to cover the cost and installation of\
      \ new solar or wind energy system improvements \nmade, or to be made, to the Property at the time\
      \ of a purchase or refinance. \n(A) Eligible Property Types \nThe following property types are eligible\
      \ for the solar and wind technologies policy: \n• one- to four-unit Properties \n• Manufactured\
      \ Housing (one unit) \nInstallation of solar and wind technologies on Manufactured Housing must\
      \ comply \nwith Additions to Manufactured Housing requirements. \nCondominium units are ineligible\
      \ for solar and wind technologies. \n(B) Eligible Programs and Transaction Types \nCosts for new\
      \ solar and wind energy systems may be added to an FHA-insured base \nMortgage, for the following\
      \ programs: \n• Section 203(b) \no purchase transaction \no Rate and Term refinance and Simple Refinance\
      \ \n• Section 203(k) Rehabilitation Mortgage Insurance Program \nii. Eligible Solar and Wind Technologies\
      \ \nActive and passive solar systems, as well as wind-driven systems, are acceptable. \n(A) Photovoltaic\
      \ Systems \nPhotovoltaic systems must provide electricity for the residence, and must meet \napplicable\
      \ fire and electrical code requirement. \n(B) Wind Turbine for Residential Properties \nA wind turbine\
      \ must: \n• have a nameplate capacity of no more than 100 kilowatts; \n• have a performance and\
      \ safety certification from: \no the International Electrotechnical Commission (IEC) standards from\
      \ an \naccredited product certification body; or \n\n \no the American Wind Energy Association (AWEA)\
      \ standards from the \nSmall Wind Certification Council (SWCC) or a Nationally Recognized \nTesting\
      \ Laboratory (NRTL); and \n• be installed by an installer who has received either a North American\
      \ Board of \nCertified Energy Practitioners Small Wind Installer Certification or small \nwind turbine\
      \ installation training from an accredited training organization. \niii. Title to Systems \nThe\
      \ Borrower must own, not lease, solar or wind energy systems for the systems to be \nconsidered\
      \ eligible improvements. Leased equipment and Solar Power Purchase \nAgreements (SPPA) may not be\
      \ financed under any FHA Title II programs. \niv. Maximum Mortgage Amount Calculation \n(A) Maximum\
      \ Mortgage Amount - Purchase \nThe Mortgagee must compute the Adjusted Value by using the purchase\
      \ price \nexcluding the cost and installation of the solar or wind technology system and the \n\
      Property Value excluding the cost and installation of the solar or wind technology \nThe Mortgagee\
      \ must add the lesser of: \n• the cost and installation of the solar or wind technology system;\
      \ or \n• 20 percent of the Property Value to the Base Loan Amount. \nThe Mortgagee must exclude\
      \ any rebates identified in the contract and assigned to the \ncontractor in determining the cost\
      \ and installation of the solar or wind technology \n(B) Maximum Mortgage Amount - Refinance \n\
      The Mortgagee must compute the Adjusted Value by using the Property Value \nwithout the cost and\
      \ installation of the solar or wind technology system. \nThe Mortgagee must add the lesser of: \n\
      • the cost and installation of the solar or wind technology system; or \n• 20 percent of the Property\
      \ Value to the Base Loan Amount. \nThe Mortgagee must exclude any rebates identified in the contract\
      \ and assigned to the \ncontractor in determining the cost and installation of the solar or wind\
      \ technology \n\n \n(C) Nationwide Mortgage Limit – Purchase and Refinance \nThe Base Loan Amount\
      \ may exceed the Nationwide Mortgage Limit for the \ngeographic area by no more than 20 percent.\
      \ See Maximum Mortgage Amounts. \nThe Mortgagee must document the cost of work, including the energy\
      \ systems’ materials \nand labor. \nvi. Cash-Out \nThe Borrower may not receive cash back from the\
      \ mortgage transaction. If an excess exists, \nthe Mortgagee must apply these funds to the principal\
      \ Mortgage balance. \nvii. Escrows \nThe Mortgagee must establish an escrow account in accordance\
      \ with the Repair \nCompletion Escrow Requirements for the remaining cost of the energy improvements\
      \ if the \ninstallation of solar or wind energy systems is not complete by the time of closing.\
      \ \nIf the energy package is part of a 203(k) Rehabilitation Mortgage, then the escrowed \namounts\
      \ of the energy package must be included in the rehabilitation escrow account. \nAny funds remaining\
      \ in the escrow account at the end of the improvement period must be \napplied to pay down the mortgage\
      \ principal. \n(A) Borrower Labor \n(B) Required Documentation: Form HUD-92300, Mortgagee’s Assurance\
      \ of \nCompletion \nWhen funds to complete the solar or wind energy systems are escrowed, the Mortgagee\
      \ \nmust execute form HUD-92300, Mortgagee’s Assurance of Completion, to indicate that \nthe escrow\
      \ for the solar or wind improvements has been established. \nCompletion Requirements for Solar and\
      \ Wind Technology Installation \n(A) Time of Completion \nInstallations of solar and wind energy\
      \ systems must be completed within 120 Days of \nthe mortgage Disbursement. \nThe Mortgagee must\
      \ apply the remaining solar and wind escrow funds to a prepayment \nof the mortgage principal, if\
      \ the work is not completed within the required time frames. \n\n \n(B) Inspection \nThe Mortgagee\
      \ or their agent must inspect the solar and wind improvement or obtain \nevidence from a local authority\
      \ that the system was installed in accordance with local \ncode. \n(C) Escrow Closeout Certification\
      \ \nAfter the repair or rehabilitation escrow account is closed, the Mortgagee must complete \n\
      the Escrow Closeout Certification screen in FHAC within 30 Days after the escrow \naccount is closed."
    drafter_attestation: Verbatim section from snapshot 8c03836f77f317e1; boundary human-curated + substring-verified
      (2026-07-23).
  judgment: false
