It’s as clear as day – solar power will be a big part of our future energy supply. It’s plentiful, renewable, and among the most eco-friendly power sources. But if you’re one of the many people considering solar, you may have been slightly put off by the price. Still, figuring out how to afford it isn’t as heavy a lift as it may seem, thanks to some amazing and varied choices for financing solar panels. Interested in learning more about what’s involved in funding solar panels for your home? We’ve got you covered.
Solar power systems can be expensive. However, homeowners should consider it an investment in their home rather than an expense. The most extensive whole-home systems can easily reach the $30,000 range (most fall lower). Remember that you may also find significant price differences based on location.
If you’re interested in solar but don’t have thousands of bucks just sitting around in your bank account, don’t worry. Financing solar panels is easier than ever these days, with a variety of options available. Here’s a look at the most common:
Personal loans are one of the fastest and easiest ways to secure financing for your solar system. You’ll work directly with a bank or other lender to receive approval, and rates vary (sometimes widely) based on your credit and other factors. In addition, these loans are typically unsecured, meaning you won’t need to explicitly put up any of your property as collateral.
Special Solar Loans
A variety of financing products are available just for solar or other renewable energy projects. Among these is the Fannie Mae HomeStyle Energy Program, which allows borrowers to take out loans for home-related renewable energy projects. These lower-interest loans can also be used as a refinancing option for solar buyers who took out other, more expensive loans.
The lease or power purchase agreement (PPA) is a less common but still viable option. Under these programs, your installer technically owns the panels located at your home but then sells you back the power they generate at below-market rates.
Another great solar financing option is to reach out directly to the company you’re buying the system from. It’s in their best interest to sell you the system, so they may be able to provide financing to expand their potential customer base. These loans will vary in affordability, but it’s worth considering as a possible option.
Solar power systems aren’t cheap, especially for homeowners who want a system big enough to generate most or all of the energy used by their home, but the benefits are undoubtedly worth it for those who can buy or borrow to have them. While some may be concerned about the money spent on interest, you’ll save money each month with a lower electric bill. Plus, these savings will continue once you’ve paid off your panels. In most cases, solar power systems also significantly boost your home’s value. And let’s not forget one of the biggest benefits of solar panels – providing a clean, renewable alternative to polluting fossil fuels.
As you can see, solar financing makes sense for your budget, your home, and the environment. So don’t let a lack of cash keep you from the solar power system of your dreams – solar panel financing may have the solution you’re looking for!