A loan for solar panels is a great way to finance your investment in solar panels. A loan for solar panels can be taken out up to $100,000 and repayable over a two-to seven-year period. You have a range of options when it comes to financing this type of loan, including unsecured loans and government loans.
Obtained a loan to finance solar panels
There are many options to finance solar panels. Your credit score plays a significant role in determining the loans you are eligible to apply for. A good score is typically at least 700. Lenders will sometimes grant loans to those with bad credit but they are likely to charge higher rates. You may need a cosigner, if you have a lower credit score.
The loan is typically paid off over a period of time. This makes it ideal for homeowners who plan to remain in their home for several years. It can take anywhere from eight to twenty years for a solar system to reach profitability.
Government loans
The government offers loans to assist you in paying for solar panels. In fact, you can get up to $500,000 to help you with the project. Good credit is required to be approved for this loan.
Solar loans have very low interest rates, which can help you save significant money over the life of your loan. Even a small difference of 1% can mean big savings over the life of the loan. You might delay solar panel installation if your credit is not good.
Unsecured Loans
Unsecured loans are a great option for those who want to make solar energy an integral part of their home. Unsecured solar loans offer lower total costs but may not be the right option for your financial future. Solar panels are a good option for anyone who plans to sell their home in the near future. They can also help you recoup your investment.
There are many options for unsecured solar loans. There are also banks that specialize on solar loans. Another option is to join a credit union. These lenders are known for their lower interest rates and special customer requirements. These lenders are not available in brick-and-mortar offices. To qualify, you will need to be a member.
Home equity loan
A home equity loan is a great option to finance a solar panel system. The amount of the loan depends on the amount of equity in the home and other factors, including your income and credit score. A fixed interest rate is a type of loan that will provide a steady monthly payment.
Home equity loans generally have lower interest rate than other solar loans. They are secured against your home which reduces the risk. Getting the lowest possible interest rate will save you money in the long run.
Power purchase agreements
For homeowners, businesses and communities, power purchase agreements that include loans for solar are a popular option to buy solar power systems. Customers can buy energy at a lower rate than their utility, often at a discount. The agreements can also be used to predict long-term electricity prices. Customers have the option to purchase the system or extend their existing power purchase contracts.
In many cases, the PPA covers upgrades to site facilities, such as trimming trees. In some states, these RECs can be worth hundreds of dollars. These RECs are only available to utilities that meet a minimum threshold. This is often very high.