Solar Purchasing Power: Credit vs. Cash

This article will offer some advice on the best ways to pay for your panels and give you some insight as you head into the process of using renewable energy. Purchasing panels can take time and financial investment. However, some decisions are smarter than others and one must realize that buying panels requires investment and more decision-making than leasing. Making sure to be looking over the long-term, taking the long-game, one can gain the massive benefits of finally owning your panel system.

There a few ways someone interested in purchasing clean energy can go when planning how to acquire the best and lowest price system. The main three we will cover in this article include cash, home equity loans, and solar loans offered by solar companies themselves.

Cash is King

Cash purchases are always the cheapest. Remember, there are no interests owed on cash purchases. When trying to purchase the lowest-cost solar panel system, cash is the best way to achieve the best value for your purchase. Typical costs range from $15k to $20k with subsidies. Another massive incentive is that purchasing solar can decrease your electricity prices sometimes more than 80 percent. Depending on the size and orientation and slope of your roof, and local regulations and policies, the prices can change. However, take to heart that most systems pay for themselves on average within five to seven years. It's clear that this is a great model for overall energy savings, and there will be no extra interest prices for your purchase. In the meantime, we are sure you are wondering how else you might pay for a low-cost system without having a liquid cash supply under the mattress. We will describe some possible ways to finance your new solar dreams.

Home Equity Loans

Home equity lines of credit can be a great way to get yourself into the market. This can also be a fairly cost-effective way to purchase your system. If you need to bankroll your panel purchase, perhaps the most cost-effective means of doing so is to utilize a loan or a home equity line of credit. In these types of loans, your house serves as collateral, and typically these selections have low-interest charges (currently about 3 to 5 percent annually). There are some tax-deductible incentives for us to pay attention!

The interest rate you end up paying is tax deductible. Home equity loans typically have fixed interest rates and seldom last longer than 20 years. Equity lines of credit, however, last on average ten years and have variable rates. Paying attention to this variable interest rate is essential, as it can cause it to grow as time passes. If you don't own a home, or have the ability to obtain equity types of loans, and you are still not priced out of the market.

Solar Loans

Solar companies want to get a panel system installed on your home or property regardless of your cash stockpiles. They can offer unsecured and secured solar loans for you an entry point into the solar market at a low price. When taking on an unsecured loan, your house won't act as the collateral point. Another thing to remember on these types of loans is that the interest isn’t tax deductible. But, you can still make up for the costs down the road with your overall energy savings. Numerous solar installers work with banks that extend solar loans.

Yet, many times you can find better rates on your financing deal by directly working with credit unions and banks. Something we should be looking out for is for high origination fees. When exploring all options for unsecured or secured personal solar loans, leave no stone unturned. Fannie Mae also grants consumers financing for solar system purchases. As you can see, there are several options afforded to consumers wishing to work with solar industry mainstays.

You know what you like and what works for you. One thing is for sure, buying solar panels can take time and financial investment. However, some decisions are smarter than others. Purchasing panels requires investment and more decision-making than leasing, but looking over the long-term, taking the long-game, the benefits of owning your system are unmeasurable. Now, weigh the costs and the headaches, avoid the crazy, and go solar today.

HahaSmart Blog - More Solar Tips and Guide
HahaSmart News - Stay Informed
Your Solar Incentives - See Credits and Incentives in Your Area
Check Your Home's Solar Price - See How Much You Save
Register Now - Unlock The Lowest Solar Prices in Your Area