We get asked this a lot. What is the best way to pay for solar?
It is one of the most important questions to ask when researching any investment, and one that is ultimately new to each of us as opposed to buying a car or even our first house.
Owning and producing your own power is a home improvement, an investment in your home with an incredibly quick return rate that can be affected by the terms necessary to make that investment.
Listed below are the most common methods for customers to purchase their solar system:
Cash. Cash is, of course, the least costly way to purchase when available to you. This is obviously not an option for many of us, but if possible, you save an interest rate, and it decreases your payback time and increases your instant savings.
Very few investments have as good of an ROI as home solar, so some customers have benefited from moving a lesser producing investment to solar.
Home improvement loan or HELOC’s. Solar improves the value of your home tremendously as much as 65% of the value of your solar system, and by law will not increase your property tax. Most customers seeking financing find that refinancing or a home improvement line of credit will be the lowest interest rate option for almost any homeowner.
Short-term financing from your local financial institution. Lenders that you currently have a relationship with can often provide the best rate on a short-term credit purchase (i.e., buying a car or installing a garage or new windows in your home). Solar-specific loans are unique and still not mainstream, but talk to your local lender about available options in your area.
Solar-Specific financing. We have different lenders that we work with to provide competitive rates for your solar project. When researching solar-specific loan options, the benefit can be terms that will be extended as far as half the life of the solar system or more, ensuring that your monthly expenses do not increase at all, even up front.
- Greenpenny Learn more.
- Residential and commercial solar project financing, up to 100% of your new solar electric systems, with no money down with a fixed interest rate. No hassle automatic payments, no annual membership fees, no prepayment penalty. Greenpenny is a virtual and carbon-neutral bank dedicated to financing a sustainable tomorrow, powered by employee-owned Decorah Bank & Trust in NE Iowa. Apply online or talk with a greenpenny banker at 888-GPENNY0 (888-473-6690 ). Member FDIC.
- Supreme Lending Learn more.
- The Wilkerson Team Home Equity Solution. Full service mortgage lender that has financing options to allow you to tap into your well deserved equity. A cash-out refinance can get you a new mortgage at a lower rate that includes the cost of your solar installation.
- LightStream Learn more.
- Shorter term loans with lower interest rates available to individuals with good to excellent credit. We may be compensated by this link.