In part one of this two-part blog series, we went over some basics on solar panel loan programs. One of several options available for those looking to finance their solar panel installation, solar panel loans are especially ideal for many due to the way they allow you to invest in an appreciating asset that brings you several future financial benefits.
At Intermountain Wind & Solar, we're happy to provide not only robust commercial and residential solar panel installation, including the Tesla Powerwall battery, but also assistance with solar loans and other financial areas related to your solar panels, which also include tax incentives and rebates. What are the potential sources you can obtain a solar power loan from, and what are some important areas to be asking yourself and your loan professionals about as you move down this path? We'll go over those details in today's part two.
Sources of Solar Loans
There are several institutions you might be able to receive a loan from for your solar power financing needs. They include:
- Traditional banks: May offer these loans in similar formats to other home improvement or personal loan types.
- Solar power manufacturers: Often offer loans through their installer networks.
- National lending institutions: Often provide specialty loan products specifically tailored to residential solar panel systems (these are some of the best options if you qualify).
- Credit unions: Many credit unions have also developed solar energy loan products with low-cost loans.
- Public-private partnerships: These are occasions where local government agencies will partner with private lenders in the area, offering solar loans with low interest rates and no fees to help incentivize the community to increase their solar reliance.
- Utilities: In other cases, utility companies themselves will offer on-bill financing programs that allow homeowners to finance their systems, then repay the loan over time through their electricity bill.
Areas to Inquire About
A couple other areas to inquire about as you move down this road:
- Secured or unsecured: Secured loans require an asset that serves as collateral for the loan, which will usually be your home. Unsecured loans do not require this, but also may come with some significant risks and may not offer you the same low interest rates. Inquire with your preferred lender about which you qualify for and what the right move for you is here.
- Monthly payments: The other big question to ask, just like you would for any major loan you take out, is what level of monthly payment you'd be comfortable with. This area will in-part dictate the loan term – a longer term will get you lower monthly payments, but will also lead to you paying more interest over the life of the loan.
For more on solar panel loans and financing options, or to learn about any of our solar power installation or maintenance services, speak to the staff at Intermountain Wind & Solar today.