Purchasing Your Solar System Through Cash Or Credit

The case of buying a solar panel system, some interesting concepts are surrounding which option is best. Now that the price of solar is getting so low, more of us are thinking about going solar. The low-cost of solar is making an exciting option for people of all financial backgrounds. Let's explore some pro's and con's involved in using credit and cash when purchasing your panel system.

There are a lot of financial destinies to consider when you start to think about buying a panel system. You have to start planning if you want to get the best and lowest system. The main three we will cover in this article include cash, home equity loans, and solar loans offered by solar companies themselves.

Cash Purchase

Cash is king when it comes to purchasing panels. Primarily, there are no interest costs. When working to buy the lowest-cost panel system, money is the safest way to deliver the best value for your investment. Typical prices range from $15k to $20k with subsidies. Another considerable incentive is that purchasing solar can bring down your electricity costs 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, notice that most solar systems pay for themselves on average within five to seven years. It's evident that this is a great model for overall energy savings, and there will be no additional interest costs for your purchase. In the meantime, we are sure you are questioning how else you might pay for a low-cost solar system without having a liquid cash supply under the mattress. We will illustrate some possible ways to bankroll your new solar fantasies.

Solar Financing

Regardless of your financial background, solar companies want to sell you solar. Solar loans can get you into the solar market at a low price. If you decide 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 gain up for the costs down the road with your overall energy savings. Various solar installers work with banks that extend solar loans. 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 awards customers financing for system purchases. As you can see, there are several options afforded to solar customers wishing to work with the solar industry backbones.

Home Equity Credit

Home equity lines of credit can be a great way to get yourself into the solar market. This can also be a reasonably cost-effective way to purchase your system. If you need to bankroll your solar purchase, perhaps the most cost-effective means of doing so is to utilize a home equity 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 credit, however, continues 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 solar market.

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