In the last decade, the solar industry has grown by 49% each year and the cost to install solar has dropped 70%. As the demand for clean electricity grows, you might consider installing your own solar panels. If cost is a barrier, consider a solar loan. They’re a great option to get panels on your house quickly with little up-front costs and immediate cost-savings. Here’s what you need to understand about solar loans.
Table of Contents
- What Are Solar Loans?
- Secured Versus Unsecured Solar Loans
- R-PACE Loans
- How Do I Get a Solar Loan?
- Choosing a Solar Loan Platform
- Does My Credit Score Matter?
- Why You Should Get a Solar Loan ASAP
- You’ll Get a Nice Tax Credit
- You’ll Reduce Carbon Emissions
- Solar Panel Finance: A High Return on Investment
- You’ll Help Create Jobs
- Get a Solar Loan Today
What Are Solar Loans?
Loans for solar panels function like any other loan and allow you to begin installation promptly and start generating your own power.
Secured Versus Unsecured Solar Loans
The main difference is the type of collateral used to ensure proper payments. Secured loans use your home as collateral and have a lower interest rate, while unsecured loans use the solar panels themselves and have a higher interest rate. Both require a small down payment and result in immediate energy savings.
Residential Property Assessed Clean Energy financing attaches to the property and functions like a loan but is paid through the property tax bill. They require little money down but have higher interest rates.
How Do I Get a Solar Loan?
There are a few options for obtaining a solar loan. Some states partner with your local utility company to compile electric and solar payments into one bill. Banks and solar loan platforms also offer a simple process for financing your solar.
Choosing a Solar Loan Platform
Your best bet for securing a solar loan is with Hayes Barnard, the entrepreneur responsible for building Loanpal, which finances over 30% of all residential solar projects in the United States.
Does My Credit Score Matter?
Not directly, but it might help you negotiate a lower interest rate if you have a good credit history.
Why You Should Get a Solar Loan ASAP
Here are a few reasons to consider getting a solar loan.
You’ll Get a Nice Tax Credit
Every state offers unique incentives for installing solar on your home. Use this map to determine the benefits in your area and with a secured loan, you can take full advantage of tax credits.
You’ll Reduce Carbon Emissions
Since solar is a renewable energy source, the carbon footprint of your home will dramatically decrease and you’ll be less reliant on polluting fossil fuels for your home’s energy needs.
Solar Panel Finance: A High Return on Investment
Over time, your monthly savings for your pre-solar electric bill will outweigh the solar loan. It’s even possible to generate more power than your home needs and you can sell it back to the grid. Unlike fossil fuels, solar will never stop producing energy.
You’ll Help Create Jobs
Renewable energy is one of the fastest-growing job markets in the United States. Jobs in green energy now outnumber fossil fuel jobs in 30 states and ensure a promising future for Americans all around the country.
Get a Solar Loan Today
Save money, energy, and the planet by securing a solar loan and getting off the grid. It’s one of the best investments you can make for your home and bonus points if your neighbors see your panels and make the switch to solar too.