Financing options for residential solar systems
Once you have made up your mind to get a solar system for your home, the next thing to do is to wonder about the financing option. Not everyone can afford to buy the whole solar panel and pay the price upfront. This necessitates the right financing option. To help you understand the finest options which you can use to have a safe financing, we are here with the best of details.
This is by far one of the most common financing methods used in almost 75% of American household. In this form of financing, you pay the solar system provider a fixed monthly amount and you also get regular maintenance too. This is a great way to make the most of solar powered products without paying too much.
Power Purchase Agreement
This form of financing is very similar to solar lease but the main difference is that the monthly amount for every unit consumed is pre-determined. So, you end up paying what you are going to consume and it is upon you to limit your bill by regulating the power consumption at your home.
Energy efficient mortgages
If you are willing to purchase the whole solar panel yourself so that you do not run into problems of monthly bills and installments, you can check out energy efficient mortgage. The federal government issues that and it offers mortgages for the sake of financing of solar panels.
For you to avail this facility, your home would need to be energy rated by a professional before your financing can be approved.
You can also check out the details of different kinds of solar loans. Of course, you need to thoroughly explore the interest charged, the other constraints and every detail before you decide which loan option sounds best.
So, with these many options at your fingertips, it should be easy to pick the right financing option. The bottom-line remains the fact that if you really want to own the panel, you should work on getting a loan. The plus thing about the loan is the fact that it is likely to help you with several tax benefits.
However, when you choose lease or PPA, you are not going to get any tax benefit as such. Though, it is a great way to make substantial savings as your monthly bill is likely to be less and you do not even have to bother about the maintenance either.
So, choose wisely.