Are Solar Panel Financing options available?

Solar Panel Financing

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One of the most intimidating factors that homeowners researching solar power often face is the potential cost of the system itself, and one of the most common questions is if there are options for solar panel financing. There are several options available for homeowners who would like to begin migrating to solar power, but simply don’t have the funds to buy a system outright.

What Are The Credit Requirements For Solar Panel Financing?

Barrett Solar makes the process of financing your solar panel installation simple, and works with a variety of financing companies to make getting approval fast and easy, even for those without perfect credit. In most cases, in order to qualify for financing the homeowner will generally only need a credit score of around 640, and there will be no money needed upfront.

What Term Options Are Offered For Financing?

Since Barrett Solar works with such a diverse array of financing agents, there is a multitude of financing options and loan terms available. Homeowners can choose to finance the cost of their solar power installation over a period as short as 5 years, or as long as 10, 15, 25, and even 30 years. This flexibility can help you drive the payment down to incredibly manageable amounts, and with rates as low as 0.49% on some products, installing solar has never been so economically feasible.

Do I Have To Finance My Solar Installation?

You will not be pressured into agreeing to any financing offers, and if you prefer, Barrett Solar also can arrange for a cash payment of your solar power installation. While not as popular as financing, it will save some money over the long term since you’ll be paying it off relatively quickly and avoiding interest on even a small balance, and you will own your home’s system much quicker.

If you elect to pay cash, the amount due will be broken up into a cash payment schedule. Typically, there will be an upfront cost of approximately 10%, with another 40% due before installation takes place. The remaining 50% will be due upon completion and will make the system officially yours. This type of installation is relatively rare and is only seen in 10% or less of solar system buyers.

Are There Benefits To Solar Panel Financing vs Cash Payment?

One of the main benefits of financing is that since you are breaking up the cost into smaller monthly payments over a longer period, you can keep more of your money in the bank, in the market, or otherwise invested and working for you.

For many homeowners, not only allows them to begin saving money on their power consumption immediately, but to spread the cost over the term of the loan and potentially recoup the interest cost with returns on those investments that yield more than the interest rate.

Solar loans undergo amortization in 18 months, which allows the consumer to leverage them for the large federal solar tax credit as well as state rebates. This means you can then recover a significant portion, 24%-26% in some cases, of that initial cost within the next tax year, giving those that finance an easy way to contribute to prepayment.

Barret Solar Can Help You Finance Your Energy Independence

If you feel like it might be the right time for your home to start owning its own power, reach out to Barrett Solar today and get a free quote. You’ll be able to go over any questions you may have about system specifics, as well as discuss any needs you have for solar panel financing, and learn about your options for minimizing the short-term cost of your solar power system.

Solar panel systems are made of durable tempered glass and require little to no maintenance for the 25 to 35 years that they will generate power. In most cases, you don’t even need to clean your solar panels. You can let the rain or snow take care of that for you. If something does happen, you will have manufacturer warranties on all equipment installed by Barrett Solar.

Solar rebates and incentives vary depending on where you live. In Kansas the largest incentive available is the 26% federal investment tax credit (ITC) which allows you to deduct 26% of the cost of your solar energy system from your taxes. Certain municipalities and utilities also offer cash rebates and other incentives. If you are a business in a rural area or a farmer, the USDA offers grants as well.

Solar rebates and incentives vary depending on where you live. In Missouri the largest incentive available is the 26% federal investment tax credit (ITC) which allows you to deduct 26% of the cost of your solar energy system from your taxes. Certain municipalities and utilities also offer cash rebates and other incentives. Evergy in Missouri, Columbia power and Ameren have notable rebates available. If you are a business owner in a rural area or a farmer, the USDA offers grants as well.

Barrett Solar offers two options to finance your solar panel system. You can purchase your system in cash or take advantage of our zero down, low APR financing options. We have a lot of different options to choose from. 

Generally it takes very large hail or a major storm to damage your solar panel system. After you go solar you will want to make sure your homeowners insurance policy has enough coverage to replace any of your panels that may be damaged in a heavy storm.

The cost of a solar panel system will depend on many factors, including the size of the system, the equipment, and the financing method. A solar panel system should be viewed as a major home upgrade, and because every home is different it is never good to base an idea of what something should cost off a ballpark figure found on the internet. Barrett Solar offers completely free no obligation solar proposals, and in most cases we can give you an accurate quote with just your historical energy usage data.

Tyler Blanchard

Founder & CEO

Tyler is the CEO of Barrett Solar.

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