If you are looking for ways to cut energy costs or basically help to conserve the environment, then opting for solar energy is a great move. The good news is that new technological marvels and a surge in new business models have contributed to a reduction in solar costs. Talking of costs, you are perhaps wondering if you can afford to invest in solar. Well, can you get solar loans? What are the financing options available? Let us look at some of the best solar financing options you can choose from.
Solar loans
One of the reasons most people have not fully transitioned to solar energy is because of the inability to finance the entire cost of the system at one go. But did you know there are solar loans? Yes, with solar loans, you can finance the entire cost of your solar system. In fact, the terms and conditions are similar to your home improvement loans.
Tips:
• Always try to save money by working with companies that don’t require a down payment-but only a monthly payment
• If you have a low credit score, opt for programs or companies that allow you to pay through a property tax assessment. With this option, your credit score isn’t a factor.
Power purchase agreements (PPA’s)
PPA’s are another great option if you do not have the upfront capital to purchase a solar system. With this arrangement, the developer arranges for the design, permitting, financing, and installation of a solar energy system at your property with little or no cost. All you have to do is pay for the power that the solar panels produce. You also have the option of choosing the fixed-rate or the escalator rate. If you are a homeowner, this option will allow you time to purchase the energy system at a lower value at the end of your contract. One thing you must note, though, is that your home must be in the right fit to host a solar energy system.
Community solar
PPA’s looked like a good option for everyone who can’t afford initial installation costs, but there is another option growing in popularity. There is what is known as community solar that will save you on your utility costs. As members of a community, you can get solar installed on your site, and the energy is fed into the local grid. You then lower your electricity bill through credits! It has no down payment and is way cheaper.
The community solar options:
Subscription
With this option, participants subscribe and pay a lower price for the electricity sourced from the community solar farm. You do not own the panels; you just buy the power at cheaper rates.
Ownership
This option allows participants to own some solar panels or a share. With this arrangement, participants benefit from all the power produced by their share of the solar panels.
Solar lease financing
A solar lease financing option allows you to pay for the solar equipment. Well, you are not buying the solar energy system, but paying to use it. If the solar panels don’t produce any solar energy, you won’t need to pay for it. An estimation of how much solar is produced from the solar panels is used to calculate your cost. It means that there is little chanced for overpaying with this option.
Final Remarks
In a nutshell, there are good solar financing options you can go for in your home. Of course, there are factors like your location, financial goals, preferences, and the likes that will affect your choice. The beauty is that solar energy is taking over and expect more models coming your way soon.
