How to Finance a Solar Power System for Your Home

In case you didn’t know, you have every reason to switch to a solar power system.

If your energy bill is a spot of bother, solar power is the answer. If you’re concerned about global warming and climate change, going solar helps preserve the environment. If you’re looking for ways to increase the value of your property, look no further than solar.

Nothing good comes cheaply, though. The high cost of switching to solar is a major roadblock for millions of homeowners who’d love to go solar. A tier 1 solar panel system can cost you $40,000 or more after federal and local incentives.

This begs the question: how can you finance a solar power system? Read on to learn how!

Save Money for a Cash Purchase

As a homeowner, saving money isn’t a foreign concept to you. You probably spent years saving for your house’s mortgage down payment.

You can use the same strategy when you’re looking to switch to solar power. Although it’s more preferable to purchase and install those solar panels in 2021 so that you can take advantage of the feral tax credit for going solar, saving is your best alternative if you’re not in a position to finance the switch right now.

Before you start saving, bring in a solar expert to assess your home and give you a breakdown of what it will cost to make the switch. With a quote, you’ll have a savings goal. You can then determine how much you can afford to save every month. You’ll also have an idea of how long it will take before you can switch.

Get a Home Improvement Loan

Over time, it’s only natural that you’d want to improve your home. Home improvements don’t come cheap, which is why many homeowners resort to taking out home improvement loans.

This credit facility is ideal if you have positive equity in your home (if you’re still paying a mortgage). If you own the home outright, getting this loan won’t be a big deal.

Installing solar panels can fall under a home improvement project. Approach your lender and start the application process. However, be sure to get a quote for going solar first, so that you have an idea of the amount of money to borrow.

If you already have an open home equity line of credit, you can use it to finance the switch if it’s enough to cover the entire cost of solar installation.

Get a Solar Loan

There are companies like GoodLeap that are in the business of making loans to help people build sustainable homes. A solar loan is customized for homeowners who are looking for ways to finance a move to solar power.

Unlike other types of loans, you’re bound to get more value off a solar loan. The companies have built relationships with other players in the solar power industry, ensuring borrowers get access to a suite of related services.

For instance, with a home improvement loan, you’ll need to hire a solar expert to give you a quote – likely at your own cost – before you can approach the lender. With a solar loan, the lender will do the assessment as part of the process of making the loan.

Know How to Finance a Solar Power System

Whichever way you slice it, a solar power system is expensive. Don’t let the high cost put you off. As fleshed out above, there are different ways to finance a home solar system. Have your pick.

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