Back in 2020, solar became the cheapest-ever electricity in history. Its price has shrunk so much that, during that year, it cost even less than the cheapest coal.
Unfortunately, that downward price trend reversed in 2021. The cost of photovoltaic (PV) panels surged by almost 50% in the second half of 2021.
That doesn’t mean you should give up on going solar. Luckily, affordable solar financing programs are still available.
This guide covers the top financing options that will let you switch to green energy, so read on.
Take Out a Solar Loan
You can get a solar loan if you don’t want to use a huge chunk of your savings to buy and install solar panels.
Most solar loans work much like unsecured personal loans in which you borrow a lump sum amount. You then use the cash you get from the lender to finance your solar panel installation expenses.
The lender, in turn, charges an interest fee over the loan amount. You can think of this as their payment for letting you borrow money. The interest rate varies, but in most cases, the more creditworthy you are, the lower the rate should be.
After agreeing to a solar loan’s terms, the lender sends you a monthly statement. It should include the total amount due for that month, including the interest fee.
The number of monthly payments you need to make depends on your loan’s terms. However, it often ranges from 36 (3-year term) to 144 months (12-year period).
Consider a Solar Lease
Another option for solar financing is a lease, which works like a rental. In this set-up, you’re the lessee, while the third-party equipment provider is the lessor.
A chief difference between a solar loan and a lease is that you don’t get money with the latter. Instead, the lessor provides a solar energy system you can use to generate green power at home. The company is also responsible for covering installation, maintenance, and repair costs.
You, in turn, only have to pay a small fee every month for using the system.
However, with a solar lease, the lessor maintains full ownership of the system. Unfortunately, that’s one of the eligibility requirements for many solar rebates and incentives. One example is the federal investment tax credit; you need to be the system owner to qualify.
Check Out Hybrid Financing Programs
A hybrid solar financing program combines aspects of a loan with a lease. It gives you the chance to own the solar energy system, which, in turn, comes from the solar company.
So, the solar company installs their system in your home, which you’d then own as long as you make payments. And since you’d be the system owner, you can still qualify for solar incentives, such as the federal ITC. You can check out https://blueravensolar.com/north-carolina/greensboro/ to learn more about how it works.
Apply for Solar Financing Today
Remember: the federal solar ITC is phasing down in 2023. So if you wait until next year to get a solar power system, you can only qualify for a 22% credit. That’s a 4% decrease from the 26% credit you can get this 2022.
So, why not explore the available solar financing programs as early as today? The sooner you do, the sooner you can save energy, money, and the environment.
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