What are the best ways to pay for your solar panels?

Purchasing solar panels will require more decision-making and an investment than leasing; however, over the long run the advantages of owning your own system are difficult to beat. Here are best methods of paying for your solar panels:

Cash

Purchasing your system for solar electric outright is your best bet. Usually, it costs $15,000 – $20,000 following tax credits and may decrease your electricity bill by 70 – 100%, depending upon the orientation and size of your roof as well as regulations in your area. The majority of systems will pay for themselves in 5 – 7 years. For more information on our Solar Financing in NJ contact Green Power Energy at (908) 271-4066.

Home Equity Loan

If you have to finance your solar panels, the most cost-effective method of doing it so includes using a home equity line of credit or home equity loan. Because your home will serve as collateral, those choices have low interest rates (presently around 3 – 5%). The interest paid is tax deductible. An equity loan ranges from 5 – 20 years and typically has a fixed interest rate. Equity lines will last ten years and have variable rates (therefore the interest might rise).

Solar Loan

There will include secured and unsecured solar loans. With unsecured loans, your home does not act as collateral and interest is not tax deductible. Most solar installers will work with lenders offering solar loans, yet you probably will discover better rates by checking directly with credit unions and banks. Be on the lookout for high origination charges. Also, Fannie Mae provides financing for the installation of solar systems through the HomeStyle Energy Mortgage Plan as they refinance or purchase a new home.

Presently, the installed price of solar panels was from $7 to $9/ watt: A 5-kilowatt system could cost about $25,000 to $35,000. Most utility companies provide incentives, and a few subsidize up to 50 percent of system costs. Though, even at 50-% of the cost a system which produces an average $75 of electricity/ month might take a lengthy period of time to pay for itself.

For more information on our Solar Financing in NJ contact Green Power Energy at (908) 271-4066. Follow us on twitter.

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