Have you ever wondered how much is solar energy? Did you know that in addition to saving money on your electric bill and helping the planet that using solar panels earns you tax credits and rebates?
If you are interested in making the switch but are curious about solar panel finance, keep reading.
Solar Panel Financing
Many people are interested in financing solar panels due to the benefits to the environment. In fact, one home switching from fossil fuels to a renewable energy source has the same impact as planting 150 trees.
Solar panel cost has also dropped in price 60% since 2011 and about 70% since 1998 making financing solar panels more accessible.
If you do not want to pay for your panels in cash, there are other solar panel finance options.
A benefit of a personal loan is that many do not require collateral. However, a downside is that the interest rate is likely to be a little higher.
The Federal Housing Administration’s PowerSaver loan gives homeowners three options:
PowerSaver Home Energy Upgrade: $7,500
PowerSaver Second Mortgage: $25,000
PowerSaver Energy Rehab 203(k) loan: $217,500 – $625,000 depending on location.
These loans typically require a credit score of at least 600 and a 45% debt-to-income ratio.
Home Equity Loan
A home equity loan allows you to borrow money from the equity in your home. The bank typically finances up to 85% of the equity in your house.
These loans also come with a low interest rate.
Whenever you are ready to switch to solar panels, numerous solar companies can assist you
Solar loans allow you to go solar and own the system without putting any money down. These loans are similar to a solar lease or power purchase agreement (PPA). While you are eligible for rebates and incentives, you are also responsible for all maintenance.
How Much Do Solar Panels Cost
Solar panels can range from $10,636 – $26,460 after the 30% federal solar tax credit. You do, however, get 30% of total system costs from the equipment and installation as a federal income tax credit.
The greater number of panels, the greater number of kilowatts. While it will cost you more upfront to buy more panels, it will save you more money in the long run.
It depends on how much you spent on the project when it comes to earning back your investment.
How Much Do Solar Panels Save You
If you are interested in solar panel finance, you should also look the post-installation savings.
Solar panels last for 25 or more years and begin saving you money almost instantly. For example, if you spend $150 per month on electricity you will spend $65,000 in the next 25 years. While installing solar panels may seem expensive, it’s a money-saving option when taking into consideration long-term expenses and savings.
Switch to Solar Today
There are 2.5 million homeowners that have already switched to solar power in the U.S. The switch can seem daunting but with all the options for solar panel finance and the benefits to your wallet and earth, it’s a great renewable option.
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