With the crazy number of benefits they carry from saving the planet to lowering electric bills for you and your neighbors, swapping over to solar panels seems like a no-brainer. But then the whopping price tag comes into view, and you remember why you hadn’t bought these panels ages ago.
So how do you drum up the finances needed to make purchasing solar panels for your home affordable? Well, you’ve come to the right place.
We’re here to answer the question of “What is the best way to finance solar panels?” So let’s not waste any time and jump right in with these solar financing options!
What Is the Best Way to Finance Solar Panels? Start With the Government
One of the best ways to make your solar panels more affordable is to see if the government will give you any financial assistance. For example, the U.S. Department of Housing and Urban Development offers special Green Retrofit grants to qualifying homeowners who want to go solar.
If you want a bigger sum of money, the government will also tack the cost of your solar panels onto your mortgage as a loan of sorts through the FHA Energy Efficient Mortgage.
If you live in one of the pre-approved states, you can use the PACE (Properly Assessed Clean Energy) program to help finance your solar panels. This program diverts state tax funds to help pay for your solar panels. The trade-off is that you’ll have to pay increased property taxes for several years to pay it back.
Find a Solar Lender
Another great way to finance your solar panels is to find a solar loan company like Loanpal. These companies often have a professional relationship with solar installers and will offer you substantial loans that will still let you claim the tax credit for the panels (in most cases).
It’s important to note that not a lot of solar loan companies exist. As a result, you’ve got fewer options when it comes to finding the best rate.
Take a Personal Loan
If solar loans aren’t your speed, consider taking a personal loan instead. They give you more freedom to “shop around” for a rate you like and still keep you qualified for the solar tax cuts.
Another perk of personal loans is that they allow you to pay for the panels in cash. This is because many solar panel installers offer discounted rates for paying them in cash.
Pack a Punch With the Purchase Power Agreement
Finally, a great way to finance your solar panels comes in the form of the Purchase Power Agreement (PPA). It’s an interesting variant of the solar loan where you pay a set fee for every kilowatt-hour (kWh) you generate with solar power as opposed to a flat monthly fee.
If you don’t plan to have heavy energy demands, this is the plan for you.
Charge It Up
In short, what is the best way to finance solar panels? Take advantage of one of the options on our list if you want to reap the benefits of solar in full. Now it’s time for you to get out there and get solar for yourself!
And for more on managing your finances and loans, check out the other posts on our blog.