Over 4% of homeowners in the US have solar panels. If you’re thinking of joining the people who are taking strides to reduce their carbon footprint, you’re going to need some cash.
Investing in a system will take a huge chunk out of your wallet. The good news is that there are plenty of solar financing options available to you.
If you don’t have the money in your pocket to play in cash, you can take out a loan or look into getting a lease.
Trying to decide which payment method is right for your budget? Check out this guide to learn more.
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Pay in Cash
The price of solar panels isn’t cheap, but if you have the money for them burning in your pocket, you might as well use it. There are tons of benefits to paying for them outright.
The main one is that you own your panels. Nobody can take them away from you.
You’ll be safe from inflation, and you won’t have to pay interest. That means you’ll save a ton of money on your system. Paying for your panels will make it easier to calculate your household utilities for the next several years as well.
Go for a Lease
Leasing solar panels is an attractive option because it’s convenient. They’re easy to get because the solar company maintains the ownership of the panels.
You’ll have to pay for the electricity they use and the tax breaks that you would usually get from having solar panels will go to the installer.
If you plan to stay in your home for a while, leasing is okay. If you believe that you’re going to try and sell your home anytime soon, however, it’s not recommended.
It will make it harder to sell your place because you’ll have to transfer the lease over. There aren’t a lot of homebuyers who will want to enter into that kind of contract.
Take Out a Loan
There are a lot of solar loans out there that you can take advantage of. They will allow you to use your savings to pay for your system over time.
Unlike with leasing, when you take out a loan, you can ensure that you’ll own your panels at some point.
You’ll also get to take the money you get from federal and state solar incentives and put it in your pocket.
Before financing solar installation, do yourself a favor and do your research. To make the loan worth it, you want to find a low-interest option that will be easy for you to make payments on.
Weigh Your Solar Financing Options
One of the best ways to reduce your carbon footprint is to install a solar system on your home. The only problem is paying for it.
Panels can take a huge chunk out of your bank account. You’ve got to weigh your solar financing options and compare companies to get the best deal. That’s true, no matter if you’re taking out a loan or paying for your system with cash.
For more tips that will help you finance your solar panels, feel free to explore the rest of our blog.
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