11 Dec Solar Panel Financing Options
Many people want to switch their power supply to more sustainable options but for many the upfront cost is prohibitive. Many systems can be upwards of several thousands of dollars which is simply unaffordable for most households – luckily there is a solution. Solar panel financing can make changing power providers much more affordable and accessible, allowing homeowners to spread costs over a longer period of time. Although everyone wants to reduce their power bills and their carbon footprint, no one wants be in debt they can’t afford, thankfully solar panel financing options make it possible to install a new system in affordable way that works with your daily living costs.
When used in the right way, solar panel financing can be a valuable tool for saving on monthly costs. But in the same way you’ll no doubt take the time to research different systems and technology, it’s also a good idea to to shop around for the best loan options and solar panel financing deals.
Here’s a few things to consider while you’re searching:
Beware of options that seem to good to be true
If you see a deal that seems too good to be true, then it probably is. There are a lot of ‘buy now, pay later’ options out there nowadays and whilst some of them can be a good way to make large purchases if you know that you’ll be able to make your repayments, many are not as ‘interest free’ as you might think. Many of the options might instead have the ‘interest’ built into the initial cost and you may pay a lot more for your system because a large percentage of the cost is being paid to the provider. People who offer this payment method often offer lesser quality systems for higher retail prices.
Here are a few of the common ways that people might get solar panel financing:
These are basically personal loans offered by banks and financial institutions to help businesses and individuals afford technology related to protecting the environment or reducing environmental impact. These loans often have low-interest rates when related to energy-saving technology and payments can usually be spread out between one to seven years. They often have low set up costs and low fees. If you have good credit than this can be a great finance option.
Whilst the old-school traditional payment method of cash is not really a finance method, it is a great investment. If you have any funds set aside, then sustainable energy solutions are a great investment as they often pay you back in spades and generate fantastic returns.
If you’re able to redraw extra funds paid into your mortgage, then this can be a great way to get solar panel financing. Many mortgages have very low rates and when you consider the possible return you could get from having panels installed on your home it’s well worth it to tap into funds in your mortgage.
Rent to own/leasing
Renting to own or leasing technology is a great way to get the benefits of renewable energy sources and technology without having to outlay the large upfront cost. These programs allow you to way a monthly cost to use the technology and often mean you are not responsible for maintenance costs. Which rent to own programs you pay a monthly cost toward the total ownership of the equipment, eventually the total cost of the lease is discharged and the equipment becomes yours. For many people this is a great way to get access to the equipment.