Everywhere you look, there are calls to action for taking care of the planet. Electric cars, sustainable products, and eco-friendly practices are becoming more popular than ever. In Massachusetts alone, over 160,000 homes are equipped with solar panels. This large number is not due to a high percentage of wealth, but because of how lucrative solar can be. So whether you want to be a trendsetter or follow in the footsteps of those around you, financing residential solar is easy.
The Cost of Not Going Solar
Many believe that solar is out of their budget and they are better off staying with their utility company. Solar panels decrease electric bills and qualify homeowners for financial incentives, quickly putting money back in their pockets. On the other hand, there is no ROI for using fossil fuels from the grid.
Although it may not seem like it, there is a high cost for not going solar. The long-term price of using fossil fuels can be upward of $100,000 and higher over the same amount of time you’d own a solar system. By staying with their utility company, households are subjecting themselves to arbitrary price changes. Users of the grid don’t pay for energy all at once because the price per kilowatt-hour of electricity changes often and rises about 4-5% each year, with some years varying. Next to gathering sunlight, paying for solar panels is the one of easiest things to do. Homeowners have the option of leasing or purchasing solar panels. Below we have highlighted what you need to know whether you decide to buy or lease a solar energy system.
There are multiple ways to pay for your solar system. Here are some popular ways to finance a solar panel system:
Purchase Solar With Cash
If you are planning to buy solar panels, you might consider using your own funds by paying with cash or a check to cover the expenses. The average price is around $35,000 before tax credits and incentives, but every project is unique. There are often two points of payment when writing a check or paying cash: once the project is approved and after your system is fully installed. Once you pay, you then qualify for financial incentives. This includes receiving credits from net metering and tax returns.
Purchase Solar With a Loan
The best way to acquire a solar system without paying a large amount upfront is to take out a loan. Specifically, solar loans are made for homeowners looking to add a solar system to their property. Solar loans are designed so that your monthly payment is often equal to or less than your monthly electric bill, so even in the short term, you’re saving. However, the credit score needed to qualify for one is a bit higher than a personal loan. Personal loans or home improvement loans are also options if you don’t qualify for a solar loan or would like to use the loan for other eco-friendly upgrades.
If you get a solar loan, you still qualify for the Federal Solar Tax Credit and other solar incentives. RevoluSun works closely with Sungage Financial, UMassFive, and other financial institutions when helping customers acquire solar loans. Sungage Financial and RevoluSun have partnered for many years. Sungage constantly provides speedy results, outstanding customer service, and reliable resources for homeowners. UMassFive offers a personal MySolar loan for those aimed at making their house more sustainable. With high maximum amounts and long terms, the MySolar loan is ideal for covering projects for solar. Both of these loan options cover the cost of installation as well as tree removal and roof repair pertaining to your solar installation.
If you are interested in solar energy but don’t have the credit score needed for a loan, nor the money to purchase a solar energy system outright, leasing is your best option. You will simply pay a lower electric bill monthly for your solar system. When leasing your system, the only benefits you receive are a lower electric bill and the ability to use clean energy. Leased systems are not eligible for tax credits or incentives, so it is less advantageous to lease your solar panels. Leases typically last around 15-20 years, and you can choose to remove the system or buy out the solar panels after the lease ends.
Solar Is For Everyone
Investing in a solar energy system can be quite feasible with proper research and assessment of your finances. Whether you buy or lease your solar system, your energy use will contribute to cleaner energy for your whole community. Once you determine which financing option is best for you, get ready to reap the financial benefits of a more eco-friendly lifestyle. To learn more about your solar options and how sunlight can fuel your life, contact our team today.
Get Solar Panels
Interested in learning more about solar? Our team can answer any question you have about financing solar panels.