Ways to Finance Solar Energy at Your Home or Business
Financing solar energy systems can be challenging if you don’t know where to look for help.
If you have considered installing your own photovoltaic solar system, you may already have explored potential financing options. If so, you may find yourself a bit confused. Well, never fear, IWS is here!
Here’s a quick rundown of just some of the financing options that may be available to you.
In days gone by, this was one of the most common ways to finance a solar energy system. In fact, it was the only option for many years. Those leases were rarely beneficial to the customer, and fortunately, those days are long gone.
Leases are still available today; however, leasing means you aren’t eligible for any tax credits, rebates or financial incentives from the government. And most important, this approach may not provide the monetary advantages that you seek with solar.
Power Purchase Agreements
In a power purchase agreement, a third party buys and maintains the panel system. The customer in turn pays a fixed rate for the electricity the solar system generates. These agreements are only available to public companies, nonprofit organizations and governmental entities, however.
Traditional Loans and Mortgages
Today, many lending institutions offer solar loans as well as energy-efficiency mortgages.
You can inquire at your local bank, credit union or mortgage lender about home equity loans or personal lines of credit to finance a new alternative energy system. Fannie Mae and the U.S. Environmental Protection Agency also offer specialized home loans through the Energy Star program that include solar systems.
These financing options typically require that you pay at least the upfront costs of installation. However, it’s important to note that the savings on your monthly electric bill may be more than the monthly loan payment.
Some states have adopted public solar financing programs called Property Assessed Clean Energy, or PACE. Under this type of program, the county lends the owner the money to pay for the system, and the system’s owner pays the money back over time along with his or her property tax payment.
In most cases, however, the PACE program is only available to some commercial customers in selected states.
Finance through Your Installer’s Exclusive Private Loan Program
Today, most solar contractors offer their customers exclusive financing. In fact, we offer our customers one of the most advantageous programs in the country.
In many cases, you can incorporate most or all of your costs, including installation!
The Benefits of Solar Energy
The financial and energy independence benefits of alternative energy systems make them an attractive option for home and business owners. If the upfront investment or system costs seem a bit daunting, contact Intermountain Wind & Solar today to schedule a consultation.
You will be delightfully surprised at how low your initial investment will be, and how quickly your system will pay for itself.