Financing Solar Panels: 3 Options

There’s no need to panic about the rising cost of solar panels.

Research shows the price of solar panels has been rising more than ever. The increase is due to the material costs and a global surge in shipping costs. Experts expect those costs to flatten by the beginning of 2022.

You’ll save more money in the long term by purchasing solar panels. Keep reading to learn more about investing in renewable energy. Here are three options for financing solar.

1. Pay Cash

One of the easiest ways to finance solar is to pay cash upfront. Paying cash offers the shortest return on investment period. When you pay upfront, you can expect the ROI within four and seven years on average.

Not only will it be more affordable than an unsecured loan or purchase agreement, but you’ll enjoy tax credits. There’s a Residential Renewable Energy Tax Credit you can pocket. The money would go back into your loan or lease fees with other options.

2. Solar Loan

You can apply for solar financing with little to no money down. There are options with fixed monthly payments and a low interest rate. You can even use a personal loan to pay for the costs.

Another option is to opt for PACE loans. The US government finances them to assist in solar panels and other energy-efficient upgrades. One downfall is how difficult it is to get a new mortgage when you have an existing PACE loan.

3. Solar Lease

The Solar Power Purchase Agreement (SPPA) is when a third-party developer owns, operates, and maintains the photovoltaic (PV) system. The customer signs the financial agreement to host the system. The consumer will purchase the energy from the provider for a contracted period.

The SPPA lease offers the homeowner to receive stable and affordable energy. There’s no upfront capital cost or operating risk. One downfall is that the provider acquires the financial benefits like the tax credits and income generated.

Benefits of Financing Solar

One major benefit of solar panels is they’re pollution-free, resulting in no greenhouse gases being immitted. Renewable and clean energy’s always available, even on cloudy days. It also reduces the country’s dependence on foreign oil.

Another major benefit is the return on investment you receive by investing in solar financing. In addition to the tax breaks and lower utility costs, you can expect higher home equity and sell for more profit when you’re ready. Blue Raven Solar has additional pros and cons to consider.

Improve Your Home and Finances Today

You can use what you read today to get started on your investment in solar panels. This guide will help you decide which option for financing solar fits your budget. What you need will vary depending on your location.

There are other ways we can help you improve your home and lifestyle. We feature the top trending content for business, services, technology, and more. Explore our blog longer for additional information and advice.