Solar Panel Financing And 6 Solar Financing Options

Mohidul Saad

Mohidul Saad is a co-founder of SOLARINSTALLGURU.COM, author and renewable energy benefit educator. He provides FREE online and offline training to home and business owners who are interested in reducing their electricity bills by 90 percent while slashing solar panel installation cost by 30-80 percent. DOWNLOAD this FREE renewable energy benefit education guide "101 ways to install solar system with little or no out of pocket cost" and start saving today.

Solar Panel Financing And 6 Solar Financing Options

updated at : Friday, February 24th, 2017

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Solar panel financing is available for solar panel installation. Therefore if you are interested, you should familiarize yourself with different solar financing options.

Solar panel financing and solar financing options

Solar Panel Financing Options

Home equity line of credit
FHA Power Saver Loan
Credit union
Local government programs
Cash financing
Free solar panels

Which Financing Option Is Better For You?

If you have equity in your home, you may consider taking a home equity line of credit to finance your solar panel installation project. The interest on the loan may be tax deductible just like your mortgage interest. The FHA power saver loan program is another great option created by the Federal Housing Administration allowing you to borrow as much as $25,000 for terms up to 20 years to help finance your solar panel installation investment. This is a great program as the payments on the loan amount are lower due to long-term financing. Many customers go through the traditional lending sources such as commercial lenders or a local credit unions to finance their solar panel installation investment. The payments are usually higher as the term of the loan is shorter. You pay off the loan in 7-10 years and pocket the energy savings for 25 years or more.

Government Program Option

Interested homeowners can also go through their local governments to finance their solar energy systems. Many times the local government provides low-cost 20-year loans to eligible property owners that are interested in installing solar energy systems in their homes. These customers would simply pay more on their annual property tax until they would repay their loans. Therefore if you have cash in the bank and would like a nice return on your investment, financing your solar panel installation cost with cash may work out really well. You will get the most bang for your buck with hefty returns for years to come. If none of these financing options are suitable for your needs, free solar panels as leasing might be an option. You can install solar panels for free on your rooftop. Solar panel leasing companies might do the solar panel installation for free or ask for some down payment. However, you will pay a fee as lease payment to the company who installed the solar panels.