Let’s get real: goingsolar can be very expensive. Even though the return investment over time is well worth the initial payment that you make for solar power, it’s still hard for the average American citizen to be able to afford to install solar panels in their property without a little bit of help.
This is where a solar loan program comes in. Because adopting renewable energy practices has become quite prevalent in American society, banks are much more willing to offer loans and help for those that are looking to install solar panels on their land. However, there are some vital details you should know about getting a loan to help with your new solar project before even starting this project.
Can I get a loan for solar panels?
Yes, you can get loans for solar panels from banks and even some solar panel manufacturers and companies in your area. There are also many different types of solar loans that you can choose from and these institutions can make sure that you get a loan that is accurate for your specific situation.
A solar loan program designed for helping with your new solar panel project is quite similar to loans taken out for anything to do with home improvement (for reference for those who have done this in the past). The terms and conditions of these loans, as all loans have them, are identical to home improvement loans. However, investing in solar panels does offer more financial benefits than just your average home improvement project. In fact, other than the benefits that come with renewable energy (such as cutting your electricity bill payments), you also receive a 30% federal investment tax credit and can even get solar renewable energy certificate incentives!
A lot of people are wary of taking out loans when they decide to convert to solar panels for a bunch of different reasons. The main reason always seems to be focused on whether or not they will even save money in the long run if they have to take out a loan at the beginning of their new solar energy life. Can you save money if you take out a loan? Yes, of course! In fact, you can save about 40–70% over the entire lifetime of your solar panels.
In fact, by installing solar panels on your property and investing in renewable energy, you’re actually already saving money on your overall electricity bills. So, even as you have the loan out, you’re able to save money by just installing a renewable energy method on your property.
Another reason a lot of people decide to not even look into solar loans has to do with the down payment. A lot of the time, when you choose to take out a loan (such as car loans), the need for a down payment is vital. This down payment can even impact the amount of money you receive, as well as the interest rate and overall loan specifics. With that being said, this can be intimidating when thinking of solar panels.
However, there are actually a lot of loans out there that you can receive with a $0 down payment! With that said, you can also use these specific loans to help finance the whole of your solar panel project. You don’t have to worry about these loans only covering half or a portion of your solar panel agenda.
Are banks the only place I can get a loan?
No. While known banks are the most popular form of institution to ask for a loan to help with your solar panel installation, there are a lot of other different institutions that you can obtaina loan. Certain solar panel manufacturers and companies offer loans as well.
Deciding on where you should apply for a loan (a bank versus a solar company) depends on the different offers you receive. Always choose the best option for you and your household. If the solar panel company you would like to work with to install the panels on your property offers a loan that is both beneficial and helpful to your situation, it might be better to work through them for the whole installation process.This might make it easier, as the company that is installing your panels is also helping finance it!
Before getting a loan, you should always meet with a few different banks and companies to make sure you’re getting the best offer that works for you. This also applies to solar companies that are going to install solar panels on your property. Look around your area for the best business with the best quality customer service and the best prices before you make your final decision.
What should I ask before I decide on a loan?
There are a few things you should know before you get a loan to help finance your new solar panels. The first thing—and maybe the mostcrucial aspect of loan borrowing—is how much you’re willing actually to pay monthly for your loan. If you can’t afford the monthly price that the bank or solar company is asking for, you may need to find a new loan provider or wait until you are more financially stable to pay these monthly payments.For the most part, loans offered for a more extended period are cheaper monthly, but you will pay more in the total cost because there is more interest. For shorter period loans, the monthly payments will be higher, but you will pay less overall because the interest will not have been as much.
You should also decide whether you would like a secured or unsecured option on your loan. A secured loan is a loan provided as long as there is an asset that is supplied to the loan provider as collateral. With solar panel loans, this will be most often be your home. An unsecured loan does not include any collateral.
Going solar is beneficial in so many ways.There are so many people who would like to invest more in renewable energy but don’t because they don’t have the money needed to do it at the moment. Luckily, banks are more willing than ever to help you out with your solar panel dreams. With loans explicitly made for solar panel installation, you can gain the benefits of solar energy in your home immediately (and save money on your electricity bill instantly) while paying back the loan that you initially took out!