Now more than ever, homeowners are investing in renewable energy sources for their homes to save money and achieve energy independence. Like any major home improvement project, the prospect of finding vendors to make your solar system a reality can be intimidating, especially when it comes to financing. You should know that solar power can be financed in numerous ways, and various organizations are available to assist you in your endeavor. Here are three helpful tips for you to research as you consider solar for your home and financing your system:
Determine If Solar Power is Right For You
To begin, you must determine if your residence is literally in a good position for solar.
18.6 million households can be powered by the present solar capacity installed in the United States. However, if you have an ancient roof with little or no sunshine you might not be one of those households. In extreme cases, you can look at your house and observe this but in some cases, it might be tough to tell how much sun your roof will actually be exposed to throughout the year. Consulting with solar experts can assist in ascertaining your eligibility.
Community solar projects allow you to reap the benefits of solar even if you don't have a suitable roof. People who can't afford solar panels, don't want to put them on their roofs, rent their homes, or share accommodation can benefit from solar community projects.
You can save money on your power bill by purchasing solar energy from one of these installations. These solar community projects might themselves be located in outlying areas, but still, power hundreds or even thousands of households.
Search for Solar in Your State
Once you've determined that solar panels are a viable option for your building, it's time to undertake an in-depth analysis of the associated costs. Location is not only a huge factor in determining how much sunlight you will get access to, it also dictates the cost of energy and regulatory fees associated with setting up a system.
On the flip side, you might benefit from incentives from your state or county that help offset these costs. Your state may have special incentives, such as rebates or carve-outs, that you should be aware of. Make sure you discover what resources are available to assist you in saving money but also understand the costs and energy pricing to create a correct calculation of your savings and time on return on investment.
Reach out to a lender knowledgeable in solar financing who can walk you through the process. Finding a lender that specializes in solar will be helpful since working with other institutions like your local credit union won’t be able to truly help you understand your local requirements and benefits.
Paying for the Solar Panels
Finding a credible installer who is certified in residential solar installation will be key in understanding the system your home can support and the expected output of that system. Your installer will also be able to quote you on the entire system so you know the costs and in many cases, they can recommend a lender they have worked with.
Discussing your options to finance solar panels is critical because every lender is different and how you pay for your system will greatly affect your return on investment. Like any loan, you need to consider the rates you are receiving, how easy it is to pay for your loan, and the credibility of your lender. If you are not going with a bank (which as we said, has its disadvantages) be careful with the lender you choose. Residential solar is a new industry and there are many new startup lenders entering the space. This is great and further proves the growing industry, but make sure you secure your financing from a reputable lender with deep pockets is something you need to consider when reviewing your lender options.
Conclusion
Only the sheer number of choices should be intimidating during the solar installation. As clean energy becomes more widely used in the United States, the cost of solar panels continues to fall. Although more legislative work is needed to improve solar access and equity, there are numerous options available to assist you in making the switch to solar power. Start by finding a great solar installer with knowledge and certifications in the industry to help you estimate the project and guide you to a financing partner.
EnFin is a new loan partner for residential solar builders and installers that is backed by Qcells, America's #1 solar panel producer. If you need financing for solar panels for your home, contact us today.
