7 Ways To Finance Your Home’s Solar Panel Installation

Solar energy is drawing the attention of homeowners these days because of its numerous benefits. If you’re one of the many interested, mere reading won’t do. The quotes on your study table are proof of your homework and your desire for them. But what’s stopping you from getting them on your roof?

While there are several reasons why don’t let money get in the way. Sure, not everyone can afford a spot-on payment, but that doesn’t mean you can’t get them installed in your home or near you. There are several ways to finance your solar panels and make installation possible.

Male team engineers installing stand-alone solar photovoltaic panel system. Electricians mounting blue solar module on roof of modern house. Alternative energy concept.

1. Consult Private Solar Financing Companies

You may think installers only put solar panels on your property, but some offer additional services to offset the cost of resident solar power systems. They provide in-house financing or even offer options to rent out equipment with flexible terms.  

2. Take Advantage Of Your Home’s Value

If you don’t have enough cash or savings, you can utilize your home’s value to fund energy upgrades. A home equity loan would allow you to borrow money against your home’s value to fund significant home upgrades besides solar panels. Another option is to open a flexible line of credit to pay for solar installation costs.  

Banks and credit unions remain the go-to solutions for significant home upgrades. You can choose from the various loan types they’re offering. However, remember always to make prompt repayments unless you want to risk losing your property. 

3. Claim Tax Credits 

Local governments can also offer tax incentives to homeowners. While you may need to shell out some cash, you can apply for solar grants and reduce costs by up to 26 percent. Tax credits are extended until 2022 but will decrease to 23% by 2023. So it’s best to take advantage of these incentives soon.

4. Consider Solar-Specific Loans

While some loans fund various home improvements, some lenders also offer loans specifically for solar equipment installation. The residential Property Assessed Clean Energy program would allow you to fund solar home installation with special tax assessments, which you can pay in 10 to 20 years. This is an attractive alternative if you plan to live for a considerable time in your solar-powered home. 

Energy-efficient mortgages can also work for both home buyers and current homeowners. This financing scheme, also known as green mortgages, uses your home’s equity to fund your energy-efficient upgrades. 

5. Try Solar Leasing 

If your home value can’t cover the installation of solar panels and your finances don’t qualify for a loan, you can still have them on your roof through a leasing agreement. In this option, a solar equipment provider would set up the equipment on your property. 

Aside from installation, they’d also be responsible for repairs and maintenance. Most leasing arrangements come with contracts, so it’s best to read the fine print to know how much and how long you need to pay them for the installation and other applicable services.  

6. Save Up For Better Installs

While you may feel pressured by the solar power trend, you don’t need to make a drastic decision to incur additional expenses rather than energy savings. You can set up a savings fund to help you pay for installations in the future. The increasing demand for solar power is paving the way for new technologies and cheaper costs to make them more attractive investments for homes.

7. Participate In Solar Sharing Programs 

If your roof doesn’t support solar panels or your location isn’t that good, you may want to consider solar sharing programs, which ensure equal access and smaller payments. Solar providers install quality materials in a designated location and supply clean energy to several households or an entire community. In turn, everyone contributes to the cost and maintenance of the shared solar power system.

Conclusion 

Although solar power comes with countless benefits for your home and the environment, homeowners across the globe often face a common barrier: funding. As the demand for solar energy increases, so do financing options for anyone who wants to install solar equipment. Depending on your financial capacity, you can avail of traditional bank loans or consider taking out solar loans from private companies and third-party lenders. Besides loans, you can also consider solar sharing programs or leasing arrangements. 

It would be best if you also considered the timing of your solar installation. You can install now and enjoy its benefits using your chosen financing option, or you can delay them until you save enough and take advantage of emerging solar technologies. Whatever you decide, you need to ensure prompt payments so you can fully realize that solar energy is not the only but the right way to go for a sustainable home.