Solar Financing
Solar Financing Options
Solar Loan:
If you plan to purchase your solar system, solar loans are often a great way to go. Many institutions offer both secured and unsecured loans that will finance the total cost of your system. Below are some benefits of going with a solar loan:
- The fact that you are purchasing, and not leasing, the solar system, you retain eligibility for available financial rebates, including the Federal Tax Credit (ITC)
- Interest on secured solar loans are likely tax deductible
- Solar energy loans in some states qualify for a special interest rate lower than market
- By sizing the monthly payments less than your current electricity bill, you will be saving money on a monthly basis while purchasing the system. Once the loan is paid off, no more payments and the system is yours.
- Owned solar systems increase your property value
- Purchasing a solar system often gets you “grandfathered” into the current providers rate structure, when leasing does not.
Solar Lease:
Leasing a solar system was a popular option a few years ago, although many of the larger global installation companies still push this option. The main benefits of a lease are often no money down and low payments. However, a leased system is ineligible for tax credits, including the ITC. Also, at the conclusion of the lease term, you have the option to buy very old equipment already on your roof or buy/lease a new system. Finally, a leased system makes it more difficult to sell your home, as the lease must be transferred or purchased at that time.
We have listed some of the more popular options for solar loans above, but we believe your first call should be to your personal Credit Union, if you have one.