We get it, solar systems are a big investment. Here at Sandbox Solar, we frequently hear, “I want solar, but how do I pay for a solar system?”
While solar is value-add to your home and will pay for the cost of the investment over time, it’s important to understand the different methods to fund your solar investment and determine which will work best for you and your home.
Ways Homeowners Can Pay for Solar
As a homeowner, there are several ways to fund a solar system. Some of the options available to homeowners include:
- Home Equity Loan: You can secure an additional line of credit based on the value of your home to pay for the solar panels upfront. You will then pay for the loan month by month as part of your mortgage payment.
- Power Purchase Agreement – This agreement, also known as a PPA is similar to a lease agreement, but instead the power company or city owns the panels, and the homeowner pays for the electricity generated.
Sandbox Solar’s Recommendation
While all of these options are viable for homeowners to get solar on your home, we strongly recommend you fund your solar system through a Home Equity Line Of Credit. This ‘solar loan’ inherently has a significant benefit in giving you direct ownership of your solar asset. While you may pay for the cost of the panels upfront, your solar loan payment will be less than your utility bill, in most cases. But more importantly, owning the panels adds more value to your home than simply leasing a system.
We’ve developed a strong relationship with the local Elevations Credit Union and trust them with our clients’ home solar loans. They will help you determine if a home equity loan is the right move for your solar investment and how it will stack up with your existing mortgage payment and current utility bill.
Don’t forget, there are also many great rebates and tax credits for solar installation on your home or building. Your solar investment may be eligible for a 30% Federal Tax Credit, meaning you can write off 30% of the cost of the install in your income tax bill. The city and your utility may also offer rebates in exchange for Renewable Energy Credits (RECs). These credits allow utility companies to use the extra power generated by your solar panels that your home or building does not need.
Ready to learn more adding solar to your home? Contact Sandbox Solar for more information about residential solar loans and installs. We’ll provide you with a free estimate and help you design a solar system that makes sense for your home and needs. Let’s get started!