You have probably heard how much solar energy can reduce your electricity bills in your home. However, installing solar panels initially, can be quite a chunk of money. According to Energy Sage, in 2019 the average solar panels costs ranges from $11,214 to $14,406 after solar tax credits, and that’s just the average. This number can be a lot higher depending on the size of your home, or the type of system your install. Regardless, installing a solar panel system is a hefty investment, so for many people it makes sense for them to take out a loan.
While this is not the same type of loan as buying a house or a car, it is still a loan and still a big investment. So today, we’ll be sharing 3 ways you can finance solar panels for your home.
The Government Supports Going Green!
Today, going green seems to be the “smart thing” to do, but it still requires a bit of money to transform your home into a sustainable space. However, if you believe in making a serious investment in energy efficiency or renewable energy to your home, the federal and state governments do offer a wide range of financial assistance options.
One in particular is known as PACE (Property Assessed Clean Energy). With PACE, the government authorizes to finance energy efficiency upgrades or renewable energy installations like solar panels, for residential property owners. The program essentially helps homeowners pay for any upfront costs of environmentally friendly initiatives. From there, residents pay the loan back in extra property taxes at an agreed upon set rate that could range from 5-25 years.
Don’t forget! The government offers a federal tax credit to homeowners and commercial property owners of 30% of the total cost when purchasing and installing solar power energy for their property. However, the level of savings for this solar tax incentive will begin to decrease after 2019.
Basically, these are government-paid incentives to help you save money on your energy bills, why wouldn’t you let them help you out?
Work Directly With Your Solar Contractor
This option is fairly easy, more than likely your solar contractors have a relationship with a specific bank that specializes in home improvement loans. These banks are more than willing to help homeowners facilitate the process of getting a loan through the relationship with the solar contractor. This can include Same-As-Cash loan, reduced interested loans or traditional installments loans. So upon installing, ask your contractor if they have any options for you to do some research on.
Get a Loan From a Specialty Lender
This is where your research comes in. It is similar to working directly with your solar contractor except it is not directly through them. You will need to do your research and sit down with lenders who specialize in home improvement loans to talk about their rates and repayment options. A few very popular ones are Greensky, Sofi, LendingClub, and Lightstream.
So now you have a few options, so let’s get started! Solar panels are a great long term investment, but also good for the planet! Consider the options above, and do your research! Which one works best for you? And then start your journey to clean, sustainable energy!