With every aspect of your home comes the need to get your finances in check. You can’t complete the building process if you fail to rack up the required funds. That’s why solar panel installation is something you need to plan for ahead of time.
While the long-term use of solar energy is on the more affordable end, you still need some money to kick off the process in the first place. So how do you finance the use of solar panels? What do you do when the cash at hand isn’t looking substantial enough?
6 Useful Financing Options For Home Solar Systems
1. Cash Payment
The first is the most obvious option for individuals who can afford the cost of acquiring and installing solar panels. If you’ve got the cash, then there’s no need to overthink it as solar panel systems are well and truly worth their price.
The best bit is that you don’t have to spend a ton as you’re only paying for the panels and installation. The power you generate and use doesn’t cost you.
2. Personal Loan
However, when you’re short on cash, you can take a loan from your bank provider or institutions providing such service. This will come with a fixed interest which will be paid back over time. The idea here is to seek other sources of income that’ll help ease the process of solar panel installation.
3. Home Equity Loan
If you’re not up for a personal loan, you can take a loan solely for your home. In other words, this type of loan is based on the use of your household as collateral. It’s more standard than a personal loan that relies on interest payment. Instead, it uses the equity from your home to grant loans that will finance renewable energy.
4. Solar Leases
This is especially useful for folks looking to avoid paying the upfront costs of solar panel installation. The trick here is that you don’t own the panels yourself, a third party does. That third party will, however, install the panels on your roof and charge you for whatever power you use. It’s a simple agreement based on trust and the ability to pay an agreed fee monthly or on the terms discussed.
5. Power Purchase Agreement
The power purchase agreement is quite similar to the third-party idea of solar leases. But in this case, the installer, for instance, The Solar Co, will install the panels for free while you proceed to pay for power usage. What that means is that you’re not entitled to solar incentives or net metering from the panels. However, it’s still a great way to avoid the upfront costs of solar panel usage.
6. Green Loans
Green loans are cash grants that are specifically aimed at financing renewable and green energy. In this case, institutions known as green banks offer homeowners loan grants that can help them finance their panels as well as the solar chargers, inverters, batteries and any other green, efficient power source.
Conclusion
Solar panels are great upgrades for your homes but they don’t come cheap. However, due to the value of solar panel systems, multiple financing options have been designed to help homeowners meet up with the demands.
