A loan for solar panel financing is an excellent way to finance your solar panel investment. The loan can be extended for amounts up to $100,000 and will be repaid in two to seven years. There are a variety of options for this type of financing, including Government and Unsecured loans.
Getting a loan for solar panels
You have many options for financing solar panels. The amount of loans you are eligible for will depend on your credit score. A score of 700 or more is considered good credit. Some lenders will grant loans to people with bad credit, but their rates will likely be higher. If your credit score is lower, consider getting a cosigner to help you out.
The loan is typically repaid over a set number of years. This is a great option for homeowners who plan for their home to be occupied for many years. Generally, it will take between eight and 20 years for a solar energy system to break even.
Loans from the government
If you are thinking about getting solar panels installed, you should know that the government offers loans to help you with the cost. You can even get as much as $500,000 to help with your project. A good credit rating is necessary to be eligible to borrow the loan.
Solar loans usually have low interest rates which can mean that you will save significant money over your loan's lifetime. Even a small difference of 1% can mean big savings over the life of the loan. However, if you are not able to improve your credit score, solar panel installation might be delayed.
Unsecured loans
If you want to make solar energy a part of your home, unsecured loans are a great option. An unsecured solar loan offers lower total costs, but it might not be the right choice for your financial future. Solar panels can be a great option if you are looking to sell your house in the future.
There are many options for unsecured solar loans. There are some banks that specialize only in solar loans. Another option is to join a credit union. These lenders have lower interest rates and unique customer requirements. These lenders are not available in brick-and-mortar offices. The process is conducted online, and you must be a member of the organization to qualify.
Home equity loans
A home equity loan is an excellent option to finance a system of solar panels. The amount of the loan will vary depending on how much equity you have in your home as well as other factors, such income and credit. This type of loan typically comes with a fixed interest rate, which means you can expect a consistent payment every month.
Home equity loans typically have lower interest rates that other solar loans. These loans are secured against your house, so they carry less risk. You will save money long-term by getting the lowest interest rates.
Power purchase deals
For homeowners, businesses and communities, power purchase agreements that include loans for solar are a popular option to buy solar power systems. Customers can buy energy at a lower rate than their utility, often at a discount. These agreements allow customers to plan for long-term electricity costs. Customers can also extend their power purchase agreements or buy the solar system completely outright.
Many times, the PPA includes upgrades to the site and trimming trees. In some states, these RECs can be worth hundreds of dollars. These RECs are only available to utilities that meet a minimum threshold. This is often very high.