As of right now, only about 6% of American homes have solar panels on them. But according to the Pew Research Center, that number is likely going to go up dramatically in the years to come.
Almost 50% of Americans admit that they’ve thought about having solar panels installed on their homes in recent years. That could very well lead to a spike in the number of American homes with solar panels sometime soon.
If you’re one of the many Americans considering solar panels at this time, you should find out about your different solar financing options before you start searching for the right solar panels. It’s a good idea to know what your options are as far as how you can pay for solar panels.
Take a look at some of the best ways in which you’ll be able to purchase solar panels below
Paying for Solar Panels With Cash
On average, solar panels cost Americans almost $13,000 these days. And that’s after a bunch of different tax credits are applied.
With this in mind, it’s obviously not possible for a lot of people to pay for solar panels outright with cash. Not everyone has more than $10,000 set aside in their savings account to purchase solar panels, which is why there are so many other solar financing options available.
But if you do happen to have some spare cash lying around, paying for solar panels outright with cash is a great idea. It’ll allow you to make the most of your solar panels from the second they’re installed on top of your home.
It’ll also allow you to steer clear of the various financing fees that will come along with some of your other solar financing options. If nothing else, it’s worth considering paying for solar panels with cash if you think you might be able to scrounge together the funds to do it.
Taking Out a Personal Loan to Buy Solar Panels
If you don’t have enough money saved up in the bank to pay for solar panels, taking out a personal loan to purchase them might be your next best option. There are more and more lenders that are now open to the idea of lending people money so that they can purchase solar panels.
If you decide to take this approach to buying solar panels, look around at the different lenders that are out there and see which one will fit your needs. Consider everything from a traditional loan that you obtain through a bank to a peer-to-peer loan from a peer-to-peer lending company.
Shop around for the best interest rates on loans if you’re going to try and take one out to buy solar panels. As long as you’re able to get a relatively low interest rate, applying for a loan will make all the sense in the world.
Securing a Home Equity Loan to Purchase Solar Panels
Have you managed to build up a lot of equity in your home since first buying it? If so, you might want to use that to your advantage when you go to buy solar panels to put on top of it.
Home equity loans have turned into one of the most popular solar financing options for those who want to buy solar panels outright but can’t afford to pay for them with cash. You can use the equity that you’ve built up in your home by taking out one of these loans.
Depending on what kind of terms you’re able to secure on a home equity loan, you could very well end up using your solar panels to pay it right off. Those with solar panels will often save a lot of money on electricity every month, and you can use your savings to pay down your loan over time.
Leasing Solar Panels With a Solar Lease
“Should you lease or buy solar panels?” is a question that many people ask when they’re first considering installing solar panels on their roofs.
The truth is that there’s no right answer to this question, as there are pros and cons that come along with both buying and leasing solar panels. But for many people, leasing solar panels has turned into an excellent option.
When you use a solar lease to obtain solar panels for your home through a solar company, that company will provide you with an entire solar system. They’ll install it, maintain it, monitor it, and even repair it for you over time.
The only catch is that they’ll technically own the solar panels even though they’re installed on your roof. So you’ll be responsible for paying them a specific amount of money every month for the right to use them, no matter how much electricity the solar panels are able to generate.
Signing a Power Purchase Agreement to Get Solar Panels
Power purchase agreements and solar leases are similar in a lot of ways. They’re so similar, in fact, that people often confuse one for the other.
But a power purchase agreement is different from a solar lease in one big way. With a solar lease, you’ll pay a flat monthly fee for the solar panels that a third-party company installs on your home, regardless of how much electricity they produce. With a power purchase agreement, though, you’ll pay a predetermined amount of money for each kilowatt-hour of electricity that your solar panels produce each month.
You’ll want to try to gauge how many kilowatt-hours of electricity your solar panels are going to produce before choosing this option over your other solar financing options.
Which of These Solar Financing Options Is Right for You?
As you can see, there will be no shortage of options when you decide to have solar panels installed on your roof. From buying solar panels outright with cash to signing a power purchase agreement, you’ll be able to choose the right option for you.
Learn more about each of the solar financing options mentioned here prior to picking the one you think will work best for you. It’ll ensure you’re able to use your solar panels to their full potential as soon as they’re put into place.
Read more about the benefits of installing solar panels on your roof by checking out the other articles on our blog.