Solar Loans For Solar 

For those who can’t afford to put down $10,000+ on a solar panel system outright, have a look at solar loans, they may be a viable option to get your house utilizing the sun in no time.  

You frequently won’t have to put any money down and will start witnessing savings instantly. And, unlike with solar leases, you’ll still receive the advantages of tax credits or rebates.

A lot of people use home equity loans to finance their solar panel systems. These loans extend the lowest interest rates, and any interest you do spend is tax-deductible. Since these loans use your home as collateral, you’re only eligible if you have enough assets; in other words, you may not qualify if you haven’t paid off much of your home's debt.

Also, if you default on a home equity loan, the bank can foreclose on your home. So it’s important to carefully examine your budget and ability to make payments before implementing for one of these loans.

Another low-interest opportunity is a Title 1 loan from the Federal Housing Administration. Though the interest isn’t as inexpensive as a home equity loan, the bank won’t foreclose on your house if you miss installments. Also, these loans are typically established more quickly than home equity loans.

If you don’t own a home or are unable to get either of the secured loans mentioned above, you can choose an unsecured loan (no collateral), or you can lease your system.

Solar Leases

Leasing a PV system is like leasing a vehicle: Each month, you pay a rental payment to the solar energy company. This kind of financing can be charming because it doesn’t require any money down and doesn’t influence your credit.

It also includes maintenance, but because most systems get a 25 to 30-year manufacturer’s warranty and require few repairs, this isn’t as valuable of a benefit as it sounds.

The big downside of leasing, besides missing out on investing in something you’ll eventually own, is that you can’t get the federal tax credit. In the case you’re not eligible for the federal tax credit for other causes, though, this can be beneficial.

“If you can’t take advantage of the tax credit, then leasing is the best option,” reveals Johnson.

“The company takes advantage of the tax credit and gives you a lower payment… but if you have a tax appetite [the ability to take advantage of the incentive], then owning the system is more economical.”

Solar Financing Can Be Complicated

“Do your research,” advises Johnson. “Look at all the financing options… make the decision for yourself. There are [companies] that are only pushing their financing onto people, and it’s really important [you] look at all that.”

Want to save and be guided by experts? Go to HahaSmart.com and try our price checker tool. It tells you how much solar power you need and how much you can save on your energy bills each month.