Do we all want to take a slice off our monthly utility bill? Solar panels are an excellent investment that could help you save thousands of dollars on your home’s utility bills. At first look, the price of installing solar panels can seem expensive. However, various financing options for solar panels could work for your home.
The three primary kinds of available solar financing include the cash-purchase option, solar loans, or solar leases. We will go over all three of them further below so that you can determine which one will help you save money in the long term without breaking the bank.
CASH PURCHASE
The most affordable option for solar financing is to make an upfront cash purchase. Leases and loans require regular payments for lower energy bills while you live in your house, whereas cash purchases cover the entire lifetime of solar power. Essentially, you are paying for 25 years of electricity in one lump sum! Make the thought of future electricity bills an old-fashioned thing. You’ll remain clear as electricity prices continue increasing for utility companies.
The main drawback of solar panel financing with funds is that you have to have a substantial amount of money in your bank account and be accessible to install solar panels. Capital costs could be in the range of $20,000. If cash-based solar system purchase isn’t an option, there are options to finance the installation.
SOLAR LOAN
Solar loans are an excellent alternative for financing solar because they don’t require any money down. This makes solar an appealing option for middle-class homeowners. The monthly loan payments typically work more than the monthly electric bill, so you’re making money from day one of the installation.
When comparing the financing options for solar loans, check the APR (Annual Percentage Rate), which is a breakdown of the total cost you’ll be paying for your loan over a year, with interest.
The most significant benefit of a loan versus a solar lease is that you fully own the solar system. This means you can qualify for government incentives and rebates when purchasing solar panels. One disadvantage of this type of ownership is that you are required to cove must cover maintenance costs through warranties available from the manufacturer to aid in paying for the cost of care. The homeowner, however, has an active role in the lease agreement than a solar lease.
SOLAR LEASE
leasing solar panels is the simplest way to enjoy the advantages that solar energy can bring, in terms of electricity costs, without the hassle or expertise of managing the system. A third party will install the solar panel, takes ownership, and handles all maintenance. When you sign the solar lease, you can lock in the electricity rate at a predetermined amount that is reduced substantially by 10-30% over the length of the solar panel.
The negatives of a solar lease are being ineligible for rebates and incentives from solar. These benefits are paid to the third-party company that owns the system. Furthermore, the increase in the value of properties equipped with solar panels doesn’t apply to houses that lease solar panels. This is because the buyer doesn’t benefit the t from the investment. You your investment to continue leasing solar panels at a monthly cost or stop using solar energy from th.
When ect Savings on Solar Panel Financing
Whichever method you fund your solar panel, you can be sure that your investment will yield an increase in years, not months. It takes about six to nine years to see a return on the solar panel financing investment; therefore, you must be prepared and make the most of solar today to reap the most significant savings.
Finaat 8MSolar
8MSolar 8MSolar We offer two options for paying the cost of solar panel installations. Solar panel customers can buy panels in cash or obtain loans through a third-party lender. We do not provide solar leases. However, our staff will be h, happy to guide you to alternatives for tax credits or solar loans to make your solar installation less expensive.
We’ve now examined the three primary types of solar financing, the cash-purchase option, the solar loan, and the solar lease. It is currently possible to determine the most suitable for your home. Contact us today for a no-cost consultation on financing solar for your home.