In a perfect scenario, we could all hand over money and have beautiful, cost-saving home solar installation. But that isn’t the case, and we must work towards the solar targets that fit our budgets.
The good news is that getting your home solar system is attainable! It’s a great thing -solar can be an extremely profitable investment that will provide you with years of steady energy and extremely low (or free) electricity bills.
The trick is to find the best finance option -There are a lot of alternatives for financing with solar! One of them happens to be the solar bill-swapping option, and it is essential when you don’t have enough cash.
What exactly is the solar bill swapping process, and how can it assist in switching to solar more simply for you?
SOLAR BILL SWAPPING: THE BASICS
By swapping bills for solar installation financing, the payments effectively take the place of the electric bill payment.
In the end, solar bill swapping isn’t an option that is as simple as there are many options to pay for a solar installation. The concept would be to “swap” the cost of your electric bill each month for the monthly installment of a solar-financed statement. There are three methods to go about switching your account to solar: loans, home equity, and solar panel leasing Power Purchase Agreements (PPAs).
In this case, you’ve got a solar panel that significantly reduces or even covers the cost of electricity. The money you’d spend on this bill would instead go towards leasing or purchasing the solar panel. Naturally, the price could not be equal to the amount of money.
It may appear similar to apples from afar. However, it’s actually a long-term cost-saving investment. Solar provides security against rising energy costs, and it will guarantee your energy bill for the next 25 years!
This means you’re more than making a profit -You’re buying an installation instead of throwing money away that you’ll never use again for utilities.
LOANS
The option of taking out a loan to finance an installation of solar panels is among the three main ways to swap your solar bill. One option is to buy and install the solar panel swiftly.
We’re sure that you understand how loans work! When you borrow money from the lender (sometimes without putting any money down), Over time, you pay back the amount with interest. The monthly payment is no longer due when the repayment is completed according to the time frame you agreed to with your lender.
If you are using loans to switch your solar bill, you will also enjoy the benefits of installing solar panels, cutting your electric account, and increasing the value of your home.
In reality, the loans work best in the case of solar bill swapping due to many reasons. The monthly loans for solar payments are usually equivalent to electric bill savings for households with average incomes. Additionally, you can enjoy the benefits that only come with having solar panels, such as rebates and incentives from federal, state, and local incentives and rebates.
Tips: When exploring loans, take your time and look through the choices! A variety of plans and lenders are on the market, and your research can go far. Some lenders, like certain solar installation firms, provide special loans for solar installation.
HOME EQUITY
Another alternative to swapping your solar bills is to make use of a homeowner equity line of credit (HELOC) or cash-out refinance. This is a good option if the value of your home has increased since the purchase (i.e., home appreciation).
With the help of a HELOC, you make use of your property equity to fund credit. In most cases, you only need to borrow what you’ll require to cover the cost of the installation. Be aware that the interest rate could be different, and you won’t be required to pay interest on funds that you do not use.
When you take advantage of the Cash-out refinance, you can get an unsecured mortgage instead of the current loan to your home. You can then take the difference between the two mortgages to pay for the installation of solar panels. Also, you should use the loan only the amount you’ll need to cover the cost of installation.
In both cases, the cash you get permits you to buy a solar home installation. Then, the savings on electric bills balance your HELOC and cash-out refinance payment. While not as simple as loans, HELOCs or cash-out refinances offer two viable solar account-swapping options.
Tips: HELOCs are usually more flexible than refinancing cash-outs. This is because it requires a brand-new mortgage, which means the process is more time-consuming.
LEASES AND PPAS
The third most popular option to swap solar bills includes leasing solar panels and PPAs.
In both cases, a different entity (a company, etc.) sets up solar panels in your residence. Then you will be able to benefit from the advantages, including lower electric bills per month. In addition, you have to pay the organization that installed the solar panels on a monthly basis.
The fundamental solar bill-swapping concept remains the same. You can save money on electricity by installing a solar system. The savings will be reflected in installments to the business that owns the solar panel.
But unlike the cash-out, loans, and HELOC refinancing, there is no ownership of the solar system for any reason. And that means you aren’t eligible for incentives and rebates, which can be a bit like wasting money. It’s great to have access to renewable energy sources without the expense of upfront expenses, but you basically rent the system for life.
Leases, as well as PPAs, are generally the final options when looking to swap your solar bill. In addition, they make the purchase or sale of homes with solar much more complicated.
Notification: At solar panel manufacturer Freedom Solar, we don’t offer leases on solar panels. We want you to enjoy all the benefits associated with being energy-independent, including the ownership of your solar system!
FIND FINANCING THAT FITS YOUR BUDGET WITH FREEDOM SOLAR
As a seasoned solar panel business and a reputable solar panel company with a wealth of experience, at Freedom Solar, we’re dedicated to making solar energy simple and affordable for everyone. We’re convinced that alternative energy sources are good for the planet and are equally wise for your pocketbook.
Our energy specialists work with you to help you find the best financing solution that will fit your budget for the month. A majority of our clients are able to finance their home solar system with no down payment and pay interest!
We provide SunPower solar panels, battery backups for your home well, and other storage solutions for power that are durable and reliable even in the most uncertain of times. Also, our 25-year guarantee for life ensures you are secure about the installations and investments.