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.