by Susan Paige
There are many benefits of choosing solar energy for your home, not the least of which is doing your part to help out the planet.
Solar power is cheap/free in the long run. Depending on your set up, you may even receive a credit from your utility company if you add energy to the grid.
So why isn’t everyone jumping on this bandwagon? One big reason is the upfront cost of installing solar panels. However, the right solar loan makes this part simple as well.
Let’s look at the options.
1. Solar Company Loans
You know how you can get dealer-sponsored financing when you buy a new car? Some solar panel installation companies offer a similar deal. The solar panel system is considered collateral for the loan. In other words, if you default on the loan, they have the right to repossess the system.
2. Municipal Loans
Check with your municipality to see what they offer. Many cities or jurisdictions offer loans for solar panels at low interest rates, and may also offer other rebates or incentives. In some places, you can also make your solar loan payments as part of your regular electric bill.
3. R-PACE Solar Loan
R-PACE loans are offered in some areas through private lenders but funded by the government. You can use them for pretty much anything that improves the energy efficiency of your home. The loan payment is added to your property tax bill over a certain number of years.
4. Fannie Mae HomeStyle Energy Mortgage
This loan from Fannie Mae allows you to finance most clean-energy upgrades to your home up to 15% of your home’s value. The solar loan is rolled into your mortgage, eliminating the need for a separate loan.
5. Private Solar Loans
In this day and age with its push toward cleaner energy, you can also find private lenders offering personal loans specifically designed as solar loans. For example, check out what Loanpal offers, the friendly lending company founded by Hayes Barnard, an American entrepreneur and philanthropist known for his interest in developing residential solar energy.
This lending company has already established relationships with solar panel installation companies, making it seamless to go from applying (and being approved!) for financing and getting your system installed. And since you’re working with a private finance company, you can bet the customer service will rock your socks off!
Install Your System Today
Don’t let the expense of installing a solar panel system keep you from doing something great for the planet. Depending on your area, there are many programs, incentives, rebates, or tax credits that you can take advantage of to help cover the cost.
For any remaining balance that you can’t cover, consider taking out a solar loan. The money that you save from not having to pay your electric bill anymore can go directly towards your loan. Once it’s paid off, you get to keep saving money on your energy bills for years to come!
Looking for more great finance tips? Feel free to poke around our blog!