Solar panel installation pays off with big energy savings, and most projects reach the break-even point in ten years or less. But, adopting photovoltaic power doesn’t come cheap – your investment costs could be in the tens of thousands.
Fortunately, you have several options to cover the expense. Here’s a look at the various ways you can pay for your solar panel installation.
Do you have enough money in the bank for an upfront purchase? If you can afford to pay in cash, doing so offers the speediest return on investment. With the available local, state and financial incentives, solar purchasing might be more budget-friendly than you think. For details on how you can save the most, ask your photovoltaic contractor or check the Database of State Incentives for Renewables & Efficiency (DSIRE).
Home Equity Loan
If you have sufficient equity in your home, you may be able to borrow against it to pay for your solar panel project. A home equity loan or line of credit may come with a low interest rate and easy payments, but you’ll need a favorable debt-to-income ratio to qualify.
Energy Efficient Mortgage
Another way to cover the costs of adopting photovoltaic power is to look into your eligibility for an Energy Efficient Mortgage (EEM). With this type of home loan, the solar costs are incorporated into the mortgage without increasing the down payment. If you already own your home, however, this won’t be an option.
In some states, homeowners can finance solar panel projects through the Property Assessed Clean Energy (PACE) program. PACE loans typically have long payback periods, often up to 25 years, and the interest may be tax deductible. That said, the interest rate may be higher than what you might expect.
Unsecured Solar Loan
With an unsecured solar loan, you don’t need to have equity in your home – this type of financing doesn’t require any collateral. Many professional photovoltaic contractors, including Intermountain Wind & Solar, offer unsecured financing for solar panel projects, and most homeowners are able to qualify. But, due to the greater risk to the lender, unsecured loans usually have relatively high interest rates.
Need more information on your solar panel installation payment options? The professionals at Intermountain Wind & Solar, a leading photovoltaic contractor in the Intermountain West region for over a decade, can answer your questions and help you make a smart investment.
Intermountain Wind & Solar offers free, no-obligation professional consultations and photovoltaic project estimates to homeowners in Utah, Nevada, Idaho, Oregon and Wyoming. Contact us for expert advice on how you can pay for solar panel installation today!