How to Finance Your Rooftop Solar Power: The Ultimate Guide
So, you’ve decided to go solar! Congratulations! Now comes the next question: how do you finance your rooftop solar power system?
One option to consider is paying for your solar system in cash. While this may require a larger upfront investment, it can also offer potential long-term cost savings and the satisfaction of owning your solar system outright. This can be a good choice for those who have the financial resources and want to avoid taking on debt. However, it’s important to carefully consider all of your options and weigh the pros and cons before making a decision.
There are a number of options available, and each one has its own benefits and drawbacks. In this article, Poulin Solar Pro explores the most popular methods of financing solar power and will help you make an informed decision on which option is right for you.
When you’re ready to go solar, you have a few different financing options available to you. One popular option is to take out a loan to pay for your solar panels. You can either finance your solar panels through a home equity loan or a line of credit. These loans let you borrow money against the value of your home, and they usually have lower interest rates than other types of loans.
Taking a loan can be a great way to finance your solar power because it allows you to spread the cost of the solar panels over time. Additionally, the interest you pay on a loan may be tax-deductible, saving you money in the long run.
There are a few things to keep in mind if you’re considering taking out a loan to finance your solar panels. First, make sure you shop around for the best interest rates. You don’t want to pay more interest than you have to.
Second, be sure to factor in the cost of maintenance and repairs when you’re budgeting for your loan payments. Solar panels require very little maintenance, but it’s still a good idea to budget for them.
Here at Poulin Solar Pro, we offer special financing rates that we’ve negotiated with lenders and are always looking for new best rates for our customers.
Getting Help from the Government
There are a few ways that the government can help you finance your rooftop solar energy system. First, the state and federal tax incentives can significantly reduce the cost of your system. The federal tax credit covers up to 30% of the cost of your system. Additionally, many states also offer additional incentives, such as rebates or tax credits. New Mexico currently offers a 10% tax credit and does not charge sales tax on the system.
Second, the government offers financing options that make paying for your system easier. The Department of Energy’s SunShot Initiative offers financing through its Loan Guarantee Program, which many banks and credit unions offer to finance solar projects.
Lease or Power Purchase Agreement
Solar leases and power purchase agreements (PPAs) are popular financing options for rooftop solar power systems. However, before signing on the dotted line, you should be aware of some drawbacks to this type of financing.
One of the biggest drawbacks of solar leases and PPAs is that you will not own the solar panels on your roof. This means that if you decide to sell your home, the new owner will not be obligated to continue the lease or PPA, and they may even be able to get a better deal from the solar company.
Another downside of solar leases and PPAs is that they often come with higher interest rates than traditional loans. This means that you will end up paying more for your solar panels over the long run.
Lastly, if your home is not suitable for solar panels, you may be stuck with a lease or PPA that you can’t get out of. So, while solar leases and PPAs can be good financing options for some people, they are not right for everyone. Be sure to do your homework before signing any documents.
Which Solar Financing Option Is Best?
There are a few options to finance your rooftop solar power system. You can take out a loan, get help from the government, or sign a power purchase agreement. So, which is the best option?
Taking out a loan is a good option if you have the financial resources to make the monthly payments. You’ll also get the tax benefits of owning the system.
Getting help from the government is also a good option if you can’t afford the system’s upfront cost. The government will provide you with a rebate or tax credit to help offset the cost.
At Poulin Solar Pro, we do not recommend leases or PPAs, because we feel this robs you of the full financial benefits of going solar and makes for an awkward transfer agreement when selling your home.
Speak with Your New Mexico Solar Power System Experts
When you’re ready to finance your rooftop solar power, it’s important to work with a company you can trust. That’s why Poulin Solar Pro is the best choice for homeowners in New Mexico. We’ve been in business for over 40 years, and we’re dedicated to helping homeowners save money and reduce their carbon footprint.
We work with reliable lenders that offer various financing options, and we’ll work with you to find the best solution for your needs. We also have a team of experienced solar power system experts who can answer any questions you may have about going solar.
Contact Poulin Solar Pro today if you’re ready to start saving money and reducing your carbon footprint. We’ll help you finance your rooftop solar power system and get you on your way to a more sustainable future. Get your free quote today.
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