Once you decide that you want to install solar panels, you have to find a way to pay for it. If you don’t have between $15,000 and $30,000 to spare, which most people don’t, you will have to look for a financing option. Luckily, there are numerous ones to choose from.
Take Out a Loan
The first option is to take out a loan. You should see a return on that investment since you can save between 40% and 70% on your energy bills. The best loans for solar panels are a type of home improvement loan. You can get these through solar installers, or through your bank.
Get a HomeStyle Energy Mortgage
There is also the HomeStyle Energy mortgage offered by Fannie Mae that you could consider. This enables you to have clean energy upgrades on your property up to 15% of the value of your home appraised after completion. This means that, when you refinance or purchase your home, you can add energy-efficient upgrades instead of taking out an unsecured loan, a Property Assessed Clean Energy (PACE) loan, a home equity loan, or any other loan.
This new mortgage has changed the landscape of solar energy. Mainly, it has changed the way solar companies engage in loan practices. It has significantly increased competition as well, which is always beneficial to consumers. It essentially means you don’t have to worry about high interest rates anymore.
You Can Increase the Value of Your Property
You also have to remember that installing a solar power system increases the value of your property. In fact, house prices rise by around $15,000 in value if they have an average array installed in them. Furthermore, homes with solar arrays sell more quickly.
Other Financing Options
Should you not be able to take out a loan, other options exist. You could, for instance, lease a system, or take out a Power Purchase Agreement (PPA), which some installers offer. This means you don’t own the system but you also don’t have to pay for its maintenance. Rather, you pay a monthly fee to the owner of the system, usually based on how much energy you produce. While you can get these agreements with no money down, the disadvantage is that you don’t have access to any of the incentives that come with solar energy. Furthermore, it makes selling your property a lot more complex.
Take a Look at Initiatives
The vast majority of people need to finance their solar panels somehow. Hence, there have been a number of new initiatives to help make this possible. A number of awards have been created to ensure that people can get the best possible deal for their needs, while at the same time getting more capital into the solar market. There are a lot of things to consider if you want to finance your solar. However, remember that the end result is always worth it. At the end of the day, you should earn back any money you borrow to pay for your panels through the savings you will make over the lifetime of your array. Do make those calculations, however, so that you know exactly what will work for you.
