Financing Options Are Available For Solar Panel
If you choose to buy a home loans system, you have the option of financing it with a personal loan, a mortgage or a lease/PPA. The best choice for you depends on your priorities and budget, as well as your ability to qualify for certain loans.
The most popular financing option is a personal solar loan, which can be obtained with minimal credit requirements and at competitive rates. Some loan providers, like SoFi and LightStream, specialize in solar financing, while others, such as banks or credit unions, offer a broader range of loan products. Mortgages, such as the FHA 203(k) or Fannie Mae HomeStyle Energy Efficient Mortgage, are great options for homeowners who want to combine their solar project with other renovations and upgrades.
A Complete Guide to Loans: Understanding Types, Eligibility, and Repayment
A solar PPA or lease is another option that can save you money on your electric bills. These financing options involve a third party owning your solar system, and they often include monitoring, labor and workmanship warranties and maintenance. These contracts typically offer lower rates than the utility price of electricity and may include escalators and term extensions. However, homeowners who choose to go with a PPA or lease must carefully examine the costs, escalators and property value boosts to see if these alternatives are worth the investment.
If you are unsure which financing option is right for you, check out EnergySage’s free solar calculator. Simply enter your address and we’ll run the numbers to show you how much you could save with a cash purchase, solar loan or PPA/lease.