How to Finance a Home Solar Installation

Posted by New Day Solar
2 months ago | August 13, 2020

It’s a misconception that you need to pay cash for a solar system. Many homeowners are hesitant to go solar because they don’t have enough in their savings account to cover the costs of the equipment and installation. With a 0 down, 12 year solar loan, you pay no out of pocket cost and usually start saving money from day one.

Options to Finance Your Solar Installation

The truth is that you can tap into a variety of resources to pay for solar. If you have been thinking about solar energy for your home, talk to our team about ways to finance the system. Here are a few options to consider:

  1. HELOC: A Home Equity Line of Credit (HELOC) is a loan that taps into the equity of your home. Often, your bank is willing to offer financing for home renovations since the installation and upgrades will boost your property value. The benefit of a HELOC is that interest rates are typically lower compared to other loan options.
  2. Solar Loan: We offer 0 down, 12 year loans through a credit union. The payments are typically less than what you are paying monthly for electricity. The credit union does not place a lien on your home, just a lien on the equipment and there is no pre-payment penalty. There is also a 26% Federal Tax Credit available if you finance or pay cash for a solar system.  

Every homeowner has unique financial needs, which is why it is important to evaluate your individual situation before securing a loan for your solar installation.

Is a Solar Loan Worth the Cost?

Taking on a solar loan is a form of “good debt” – an investment that can help you save money in the long run and is money you are already spending monthly on your electric bill. When you have a solar loan, you can start enjoying the benefits of solar energy right away, with the eventual goal of full ownership when the equipment is paid in full. Solar loans are for 12 years with no pre-payment penalty and the solar panels and inverters both come with a 25 year manufacturer warranty. When you consider the savings on your utility bills and the solar tax credit, it’s easy to see that a solar loan can be a great way to protect your finances. You also won’t have to worry about the rate hikes from the utility company!

Are you think about having solar installed and don’t know where to start? Call our team at New Day Solar to get honest answers to your solar questions and a no obligation quote.  We have been installing solar in this area since 1988 and customer satisfaction is our #1 priority! Contact us to schedule a free consultation: (855) 444-6329 or visit us online at www.newdaysolar.com.

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