source:
  type: guide
  id: hud-4000-1-ii-m-solar-and-wind-technologies
  authority: FHA Single Family Housing Policy Handbook 4000.1, Part II — m. Solar
    and Wind Technologies (08/19/2024)
  description: FHA Single Family Housing Policy Handbook 4000.1, Part II — m. Solar
    and Wind Technologies (08/19/2024).
  coverage_tier: operative
obligations:
- id: hud-4000-1-ii-m-solar-and-wind-technologies-full
  canonical_id: hud-4000-1-ii-m-solar-and-wind-technologies-full
  section: FHA Single Family Housing Policy Handbook 4000.1, Part II — m. Solar and
    Wind Technologies (08/19/2024)
  type: do
  tags:
  - regulator-direct
  - fha
  - hud-handbook
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: FHA Single Family Housing Policy Handbook 4000.1, Part II — m. Solar
      and Wind Technologies (08/19/2024)
    source_class: hud-handbook
    source_url: https://www.hud.gov/hud-partners/single-family-handbook-4000-1
    snapshot_id: 8c03836f77f317e1
    fetched_at: '2026-05-23T00:28:40Z'
    content_hash: sha256:411430f29b13f9b54a2ebb0e6f6e7087ecd2b90d0da22eb0c8c792eaa2d7d0df
    paragraph_quote: 'm. Solar and Wind Technologies (08/19/2024) The solar and wind
      technologies policy allows the Mortgagee to increase the Base Loan Amount to
      cover the cost and installation of new solar or wind energy system improvements
      made, or to be made, to the Property at the time of a purchase or refinance.
      i. Eligibility (A) Eligible Property Types The following property types are
      eligible for the solar and wind technologies policy: • one- to four-unit Properties
      • Manufactured Housing (one unit) Installation of solar and wind technologies
      on Manufactured Housing must comply with Additions to Manufactured Housing requirements.
      Condominium units are ineligible for solar and wind technologies. (B) Eligible
      Programs and Transaction Types Costs for new solar and wind energy systems may
      be added to an FHA-insured base Mortgage, for the following programs: • Section
      203(b) o purchase transaction o Rate and Term refinance and Simple Refinance
      • Section 203(h) Mortgage Insurance for Disaster Victims • Section 203(k) Rehabilitation
      Mortgage Insurance Program ii. Eligible Solar and Wind Technologies Active and
      passive solar systems, as well as wind-driven systems, are acceptable. (A) Photovoltaic
      Systems Photovoltaic systems must provide electricity for the residence, and
      must meet applicable fire and electrical code requirement. (B) Wind Turbine
      for Residential Properties A wind turbine must: • have a nameplate capacity
      of no more than 100 kilowatts; • have a performance and safety certification
      from: o the International Electrotechnical Commission (IEC) standards from an
      accredited product certification body; or II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT
      A. Title II Insured Housing Programs Forward Mortgages 8. Programs and Products
      - Solar and Wind Technologies (08/19/2024) Handbook 4000.1 488 Last Revised:
      11/26/2025 o the American Wind Energy Association (AWEA) standards from the
      Small Wind Certification Council (SWCC) or a Nationally Recognized Testing Laboratory
      (NRTL); and • be installed by an installer who has received either a North American
      Board of Certified Energy Practitioners Small Wind Installer Certification or
      small wind turbine installation training from an accredited training organization.
      iii. Title to Systems The Borrower must own, not lease, solar or wind energy
      systems for the systems to be considered eligible improvements. Leased equipment
      and Solar Power Purchase Agreements (SPPA) may not be financed under any FHA
      Title II programs. iv. Maximum Mortgage Amount Calculation (A) Maximum Mortgage
      Amount - Purchase The Mortgagee must compute the Adjusted Value by using the
      purchase price excluding the cost and installation of the solar or wind technology
      system and the Property Value excluding the cost and installation of the solar
      or wind technology system. The Mortgagee must add the lesser of: • the cost
      and installation of the solar or wind technology system; or • 20 percent of
      the Property Value to the Base Loan Amount. The Mortgagee must exclude any rebates
      identified in the contract and assigned to the contractor in determining the
      cost and installation of the solar or wind technology system. (B) Maximum Mortgage
      Amount - Refinance The Mortgagee must compute the Adjusted Value by using the
      Property Value without the cost and installation of the solar or wind technology
      system. The Mortgagee must add the lesser of: • the cost and installation of
      the solar or wind technology system; or • 20 percent of the Property Value to
      the Base Loan Amount. The Mortgagee must exclude any rebates identified in the
      contract and assigned to the contractor in determining the cost and installation
      of the solar or wind technology system. II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT
      A. Title II Insured Housing Programs Forward Mortgages 8. Programs and Products
      - Solar and Wind Technologies (08/19/2024) Handbook 4000.1 489 Last Revised:
      11/26/2025 (C) Nationwide Mortgage Limit – Purchase and Refinance The Base Loan
      Amount may exceed the Nationwide Mortgage Limit for the geographic area by no
      more than 20 percent. See Maximum Mortgage Amounts. v. Required Documentation
      The Mortgagee must document the cost of work, including the energy systems’
      materials and labor. vi. Cash-Out The Borrower may not receive cash back from
      the mortgage transaction. If an excess exists, the Mortgagee must apply these
      funds to the principal Mortgage balance. vii. Escrows The Mortgagee must establish
      an escrow account in accordance with the Repair Completion Escrow Requirements
      for the remaining cost of the energy improvements if the installation of solar
      or wind energy systems is not complete by the time of closing. If the energy
      package is part of a 203(k) Rehabilitation Mortgage, then the escrowed amounts
      of the energy package must be included in the rehabilitation escrow account.
      Any funds remaining in the escrow account at the end of the improvement period
      must be applied to pay down the mortgage principal. (A) Borrower Labor Escrows
      may not include costs for labor or work performed by the Borrower (Sweat Equity).
      (B) Required Documentation: Form HUD-92300, Mortgagee’s Assurance of Completion
      When funds to complete the solar or wind energy systems are escrowed, the Mortgagee
      must execute form HUD-92300, Mortgagee’s Assurance of Completion, to indicate
      that the escrow for the solar or wind improvements has been established. viii.
      Completion Requirements for Solar and Wind Technology Installation (A) Time
      of Completion Installations of solar and wind energy systems must be completed
      within 120 Days of the mortgage Disbursement. The Mortgagee must apply the remaining
      solar and wind escrow funds to a prepayment of the mortgage principal, if the
      work is not completed within the required time frames. II. ORIGINATION THROUGH
      POST-CLOSING/ENDORSEMENT A. Title II Insured Housing Programs Forward Mortgages
      8. Programs and Products - Solar and Wind Technologies (08/19/2024) Handbook
      4000.1 490 Last Revised: 11/26/2025 (B) Inspection The Mortgagee or their agent
      must inspect the solar and wind improvement or obtain evidence from a local
      authority that the system was installed in accordance with local code. (C) Escrow
      Closeout Certification After the repair or rehabilitation escrow account is
      closed, the Mortgagee must complete the Escrow Closeout Certification screen
      in FHAC within 30 Days after the escrow account is closed. II. ORIGINATION THROUGH
      POST-CLOSING/ENDORSEMENT A. Title II Insured Housing Programs Forward Mortgages'
  judgment: false
