Going SSolarcan helps you lower your energy costs and improve our planet. It’s important to note that a high-quality, reliable solar installation doesn’t come for free. However, solar installation costs continue to decline.
The average cost of a solar home installation is $20,000. You can still afford to finance your solar home installation. Solar loans are one of the best options you have.
Many people are unable to pay cash for alternative energy. Solar loans are a great way to get you there.
Examine solar loans, their pros and cons, as well as other options for financing.
Sometimes, solar panel leasing can be confused with solar loans. We don’t lease solar panels at Freedom Solar. We offer something much better — the option to own! Our affordable financing options make it simple for you to switch to solar power when the time is right.
What are solar loans?
Solar loans are loans that are specifically designed for solar panels and their installation. Solar loans work much like home improvement loans.
You borrow money and pay it back monthly plus interest. This money is used to install solar panels, which start saving you money the moment they are operational. You can choose a secured loan or an unsecured one, depending on your financial situation and circumstances.
- Secured Loan. In the event that you default on loan payments, your lender will claim an asset as collateral. If you own a valuable asset, such as your home, lenders will approve secured loans. The repayment period for most secured solar loans is 10-30 years.
- Unsecured Loan. The lender doesn’t require collateral but weighs your income and credit rating. It is harder to get unsecured loans than secured loans. The repayment period for most unsecured solar loans is from one to seven years.
Solar loans offer many benefits.
- Solar installers can begin setting up your system without you having to pay upfront.
- Solar loans allow you to own your installation, as opposed to leasing.
- Owning a home allows you to take advantage of federal rebates and incentives and lower your overall costs.
- You may be able to save money or break even on your monthly electricity bills.
If you’re looking to install solar, but your bank account isn’t bursting with cash, solar loans can help. They fit into any budget.
Tip: The Freedom Solar project planner will help you kickstart and plan your solar journey.
What to consider when comparing solar loans
Before you lock in a solar loan, carefully consider these three factors:
- The loan terms. How long will it take to repay the loan? The interest rate on longer-term loans is higher, while it’s the opposite for short-term loans.
- Solar loans interest rates annual percentage rates. The solar loan interest rate is the percentage that you pay to the lender in exchange for the loan. APRs are slightly different. They represent the total cost of borrowing plus any fees. APRs tend to be higher than interest rates.
- Fees. Included in this are any costs that the lender has included. Original fees, dealer costs, and closing fees often accompany solar loans.
Before you finalize your solar loan, consider all of your options.
There are dozens of lending options available, from specialty solar installers to banks. You know what options are best for you. You also want to make sure that you are investing in the most durable panels and equipment.
SOLAR LOAN INTEREST RATES AND FEE
Pause for a minute and try to find the lowest solar loan rates.
When shopping, consumers are inclined to look for the lowest rate. The lowest solar loan rate may not be your best solar loan rate. Details are important.
Ask lots of questions and read all the fine print. What apparently may be super-low solar loan rates could include tacked-on fees (
Before you sign a solar loan, take into consideration the costs of installing solar panels. This gives you a better idea than just solar loan rates.
For example, solar loan interest rates are “>1%-5% of the loan amount, but can reach 30%. This is another reason to compare multiple lenders and inquire about their details.
It is important to consider the terms of the loan, the fees, and the interest rate. It’s important to remember that the interest rate is not the only factor in determining your ideal loan. You want to make a property investment that will last for decades and increase the value of your property.
FURTHER OPTIONS AVAILABLE FOR SOLAR LOANS OR LENDERS
Solar installation companies specialize in the industry, so they are often your best option for financing. Other entities may offer solar loans.
- Solar lenders. Solar lenders are companies that offer loans in conjunction with financial institutions, social installation companies, and specialty companies.
- Utility Companies. Oddly, your utility provider may finance and pay monthly for solar installations.
- Municipalities. You can get financing for your Property Assessed Clean Energy project (PACE) in some states and pay according to the property tax you owe.
- Credit Unions: Your local credit union may be able to offer you a decent loan for solar
- Large banks and lending institutions may offer residential solar loans.
- Partnerships between private and public entities. Private lenders often team up with local governments to create solar loans that are competitive.
While you are looking for a lender, keep these three factors in mind. Further advice can be obtained from a trusted company.
Note that in addition to solar loans, other financing options are payment-purchase agreements (PPAs), leasing solar panels, and government programs. You can get solar quickly with PPAs and leases, but you cannot take advantage of federal incentives.
CONTACT FREEDOM SOLAR FOR EXCELLENT FINANCING AND EXPERT INSTALLATION
Solar loans allow you to enjoy the benefits that solar offers while also capturing valuable incentives. Finding the perfect solar loan can be a frustrating process.
We at Freedom Solar are here to make solar easy for you. Our flexible price allows most customers to finance their solar installation with low interest and payment plans.
You don’t need to worry about the problems that leasing can cause. You can own your solar system with our competitive financing options!
We only use the highest-rated solar panels. We offer solar power systems and the highest-rated solar panels.