Understanding Solar Loan Rates


There has never been a better time for homeowners to opt for solar energy. But with the expiration of solar tax credits, this opportunity could escape. Fortunately, most solar companies offer homeowners a range of purchase options, regardless of their budget and credit history. These include: easy cash purchases, solar leases, PACE (property valued as clean energy), solar loans at competitive rates.

Cash purchases offer the best long-term savings and the best return on the owner's investment. Tax incentives alone allow homeowners to recover 30% of their system costs, and energy savings will cover the rest of the system in just a few years, not to mention decades of free electricity. For added flexibility, cash does not necessarily have to come from savings, it can also take the form of a net worth loan that can be deducted from taxes.

At the other end of the spectrum, solar energy leases can offer all the benefits of a cash purchase in terms of energy savings, with the difference that the solar company owns the rooftop system from the owner. The landlord simply pays a small monthly fee to "rent" his system. Simple 20-year financing terms are available and a 20-year system guarantee is a great option for those who wish to limit their expenses to zero. In addition, at the time of sale, the solar lease can be awarded to the new owner, which makes the property much more attractive.

PACE programs offer another smart option for those looking for solar energy, with no initial cost. The solar system is financed by the property taxes of the owner. It works like a loan and stays eligible for the 30% tax credit. With terms of up to 230 years, a 30-year product warranty, no credit rating and a transferable loan to the new owner, low monthly payments and immediate savings make it a very attractive, fast and seamless option. pain.

With a well-established solar panel loan to solar companies, there are no fees to pay, financing terms up to 25 years and generous tax incentives. Owners acquire not only their system and the tax benefits that accompany it, but they are also protected by a product warranty and a 25-year production guarantee. Add to that immediate savings, low monthly payments and underwriting a solar loan, which is one of the brightest financial steps that a homeowner can make.

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