How Do You Afford to Buy Solar Panels?
With solar financing, installing solar panels is becoming more and more common for both businesses and residences. It’s a good investment from a financial standpoint as it cuts down on utility bills, and it’s good from a landowner’s perspective as it adds property value. As more people turn to solar energy to power their homes and businesses, it has become more affordable and accessible, which in turn makes it even more appealing for others.
With tax credits and rebates to make the installation more affordable, the average cost of solar panels can be anywhere from $11,000 to $25,000 depending on the square footage of your available roof space, kilowatt usage, southern facing roof line, and other factors varying the price. However, Sunpro Solar’s systems generate electricity for over 25 years, which means you can lock in savings for a long time. That’s great news if you’re looking to save on energy bills!
The easiest method for getting solar power is to simply pay for the installation yourself. In the long run this gives you the highest value for cost savings, and paying for your solar panels outright gives you the immediate benefits from solar tax credits, rebates, and lower utility bills. There are numerous government incentives designed to help you with the initial expense as well so that you can be energy efficient for the lowest cost.
Solar Financing Loans
If outright purchase isn’t feasible for you at the moment, don’t worry! One of the affordable solar financing choices is to get a solar loan. Solar loan financing allows you to avoid the steep payments upfront while also giving you immediate ownership of your system.
A solar loan is a loan that is used towards the purchase of a solar power system for your home. Like a regular loan, it is paid off in monthly payments with interest, but you are the system owner and are entitled to the benefits such as tax credits, rebates, and and the warm feeling of knowing that you’re helping to make the planet a little more. But especially the tax credits and rebates. You also get the savings from not using the local power grid so much, which lowers your monthly energy bill.
If you’re considering getting a solar loan, there are several ways to secure one. Usually solar panel manufacturers will offer loans, as will many local and national banks, and credit unions. You can also get either secured or unsecured solar loans. The difference between these two is that secure loans require an asset (typically your home) as collateral for the money borrowed. However, secured loans generally have lower credit score requirements, and their interest rates are lower as well. Unsecured loans do not require an asset, which can be helpful.But their interest rates are usually higher, and thus have lower financial benefits over long term. In addition, unsecured loans are not tax-deductible.
Energy Efficient Mortgage (EEM)
Another option for solar financing is to look into your eligibility for an Energy Efficient Mortgage, also called an EEM. An EEM is a mortgage that credits a home’s energy efficiency into the mortgage. This gives borrowers a chance to finance more energy saving measures, which then qualifies them for larger loan amounts.
This option is available either through the US government, or through an organization such as Fannie Mae. Buyers looking into properties that already meet certain energy efficient standards would qualify for these mortgages. Buyers looking to make energy efficient upgrades such as affordable solar to their current home may also qualify for refinancing options.
Solar Power is Affordable
No matter what kind of solar financing you might need, solar panels are an excellent addition to your home. Adding solar panels to your roof will also add value to your house. In fact, one study shows that some buyers are willing to pay a premium of upwards $15,000 for a home with an average-size solar array. Another study conducted by SEIA (The Solar Energy Industries Association) found that there’s 1.5 million houses in the US now using solar energy systems, and that another one is added every ninety seconds. If you move after getting solar panels, having documents that the installation was done properly can help you sell faster. It also helps to keep documents showing what your energy bills were like after going solar.
If you’re thinking about going solar, there’s lots of different options out there for affordable solar power. Be sure to compare different finance options to find the perfect one for you and your home.