Solar power for many people is considered to be the future of energy. Solar energy has a variety of long-term benefits, which include reduction of fossil fuel reliance and reduced energy bills for those that have their own panels. While there are clear benefits that come with having your own solar panels and system installed in your home, this benefit does come with some significant upfront costs. While it can seem like these costs are too much to incur upfront, there are a variety of financing options that you could take advantage of.
Today, most of the major providers of solar panels and installation services are well aware that the cost can be too much to take on for some homeowners. In order to reduce the upfront cost, a solar panel company is often able to partner with a finance company to offer attractive loan options. This will allow you to pay off the cost over the installation over several years. In many situations, the amount of money that you save on electricity will offset your monthly loan payment.
Solar Lease Plans
Another way that you can finance your solar panels is through the use of solar lease plans. When you have a solar lease plan in place, you will have a limited amount of upfront costs, but you will be simply leasing the panels from a third-party. This benefit normally will also come with maintenance and installation services. Those that have a solar lease plan in place will also have the ability to purchase the solar panels in the future based on a predetermined purchase price.
There are also a few different mortgage providers today that offer specialty mortgages that can include a provision to make energy-efficient upgrades to your home while using long-term mortgage proceeds. Through the US government loan program Fannie Mae, you can take advantage of the Energy Efficient Mortgage program. Under these programs, you can receive loan proceeds that are pegged to be used for energy-efficient home improvements. This often includes investing in solar panels. To qualify for the loan, you will need to have an acceptable LTV and personal credit score. However, the key advantage is that you will be able to make these payments over a thirty-year period, which can reduce the monthly expense.
Ultimately, having solar panels installed in your home is a long-term investment. However, you will eventually recoup this investment through reduced energy bills on a monthly basis and you could also see the value of your home appreciate.