Financing Options Are Available For Solar Panel
Financing Options Are Available For Solar Panel
Financing Options Are Available For Solar Panel homeowners will need to finance some or all of the cost of their solar panels unless they have enough cash to pay for them upfront. To help lighten the financial burden, many installation companies offer financing through third-party lenders. These financing options often come with low rates and terms ranging from 10 to 25 years. This is a great option for those who want to avoid the hassle of applying for a home equity loan, HELOC or cash-out refinance and would like to lock in their solar electricity rate.
Sun-Powered Savings: A Guide to Financing Options for Installing Solar Panels
Another way to finance a solar system is through a solar lease or power purchase agreement (PPA). With these agreements, a third party owns and installs the equipment on your roof, and you agree to pay them a monthly fee for the energy they produce. These payments can be as low as 10% to 30% lower than what you pay for traditional electricity each month. They may include a small annual escalator or be flat for the duration of your contract.
Whether you choose to go with a solar financing option or a traditional personal or home improvement installment loan, your credit profile and ability to make monthly payments will shape your term length and APR. For a comparison of these financing methods, we recommend dropping your address into our free EnergySage Solar Calculator. You’ll be able to receive custom solar quotes from multiple installation companies with various financing options included.
