Are you looking to go solar?
Whether it’s for residential or commercial use, one thing is clear: you’re making a smart choice. Solar power isn’t just good for the environment. It’s cheaper and more reliable than several other energy sources. Plus, it can improve the value of your property.
There’s one thing holding you back, though: funds.
Going 100% solar isn’t a cheap affair. Even after making use of federal and local solar tax credits, you could still spend anywhere from $11,000 to $50,000, depending on your location and size of the property.
But this shouldn’t put you off. There are funding sources you can turn to when you’re short on the money you need to install solar.
Continue reading to learn more about the best solar panel funding sources.
1. Home Improvement Loan
For most homeowners, the easiest way to fund your solar project is to take out a home improvement loan.
If your mortgage is clear, you can borrow against the value of the property. This is a secured loan that allows you to attach the property as collateral.
Another ideal option is a home line of credit. If you’ve got positive equity in the home, lenders can always allow you to tap into the equity. If it’s substantial, nothing stops you from using the money to install solar.
2. Dealer Financing
The solar industry has seen tremendous growth in the past decade. There are now thousands of companies selling solar products and related services.
Some of these companies know that the #1 reason most people don’t want to install solar is cost. This is why they are offering different forms of financing arrangements to qualifying clients.
With dealer financing, you get the solar equipment and installation services you need, but you’ll pay for the cost over an agreed period of time. This is more like securing equipment financing when you run a business.
Do extensive research and find a dealer with terms and conditions that suit your needs.
3. Solar Loans
There are financial companies that offer financing options for the solar industry. A good example of such a company is Loanpal, which focuses on residential customers.
Unlike other financial companies that offer a wide range of credit facilities, solar financing companies have a better understanding of your needs. You’re more likely to have your loan application approved when you’re working with a solar financing company.
4. Leasing Solar Equipment
You don’t have to stress yourself about buying solar equipment. You can lease it instead. This is especially ideal for tenants and people who don’t plan to stay in their properties for the long-term.
Leasing solar equipment is like leasing a car. You get the system installed on your property, but you don’t own it. You’re not responsible for its maintenance and repairs.
Once your lease expires, you can extend it or let the owner uninstall the system.
Utilize These Funding Sources for Your Solar Needs
The cost of buying and installing a solar system can be prohibitive, but that doesn’t mean it’s out of reach. With these funding sources, you now have alternative ways to get solar panels on your roof to start generating clean renewable energy that will end up saving you a lot of money!