Installing a solar panel is the best decision you can make for your home. Not only will it reduce or eliminate your electricity bills, but also minimize your eco-footprint for great sustainability. Solar systems are also known to increase the value of your property and decrease your dependability on unrenewable energy.
However, it is worth noting that partaking in this new direction doesn’t come cheap. For starters, solar panels cost an arm and a leg, whereas the installation cost can knock you off your feet. This doesn’t mean you should stop pursuing your dream. You can always find a way to finance the project.
Fortunately, in this article, we focus on solar panel financing to ensure you attain the best for your home.
What is solar panel financing?
After recognizing the benefits that come with installing a solar system in your home, the next part is how to realize your dreams. Solar panel financing is one way that enables homeowners to raise the funds required to set up and complete the project. This means acquiring loans for the solar systems to be up and running in their homes while paying off the cost in a few years.
Ways to finance solar panels
There are different ways that one can choose solar panel financing. For instance, you can choose to play for the solar panel installation with the full amount or pay the amount in bits over a period of time using a loan(s). The latter is what many people are conversant with. Going for home improvement financing is one way to extend the payment for some months or years. Below are some of the ways for solar panel financing.
Getting Personal Loans
Going for personal loans is by far the best option for solar panel financing. This is because loans involving solar panels come at fixed interest rates with secure monthly payments that don’t change throughout the loan. Personal loans provide an easy and faster way to access cash, often with no instigation fees.
Home Equity Loans
Going for a home equity loan means that you have acquired plenty of equity for your home and prefer cashing it in. Like personal loans, home equity loans come with fixed interest rates as well as fixed settlement timelines.
You can also choose a HELOC (home equity line of credit) loan. It entails borrowing the cash against your credit card. However, HELOC comes with a variable interest rate, meaning the payment can either go up or down depending on the fluctuation of the interest rate.
Both loan options enable you to set your home as collateral, borrowing up to 85% of your home value. However, the requirements for these loans hinder many people who choose this route. But, if you have adequate home equity, going for this option is ideally the best option.
Rebates and government financing
Accessing government rebates and loans to install solar panel are also among the best ways for solar panel financing. These loaning programs require one to pay a down payment to acquire the loan. The best part is that the programs enable people to purchase homes, at the same time, finance solar panel installation. Before you buy new panels, see if there is government assistance available.
Adding a solar system to your home helps save you a lot of money, as it keeps electricity charges low. However, not all homeowners have the financing capability to own solar panels for their homes. In this case, solar panel financing is the best option. It displays flexibility that enables you to follow your budget and other financial goals.