Solar Loans: Financed for The Life of Your System
Solar loans are a bewitching popular method to finance your solar energy system for homeowners and businesses alike. These loans offer the initial costs for buying and installing solar panels, so you can take advantage of the power of the sun and reduce dependence on conventional sources. Solar loan options
How Solar Loans Work Solar loan options
Solar Loan:** You will apply for a solar loan with an lender (a bank, credit union, or online lender).
Step 4: Loan Disbursement – The lender will then disburse funds to the solar installer upon loan approval.
Step 5: Installation — The solar installer will use these loan funds to purchase and cover the cost of installing your solar energy system.
Paying back: You pay off the loan with monthly installments (regular payments), usually over 5 to 25 years.
Types of Solar Loans Solar loan options
Secured Solar Loans: These are secured loans that ask you to put up some sort of collateral (like your home, or the solar energy system itself). While secured loans tend to be lower in interest rate, they require a higher credit score.
NOTE: These are the general features of the types mentioned above and they may differ in actuals from lender to lender* Secured Solar Loans: Secured loans require you to pledge an asset — generally your home — as collateral. They often offer higher interest rates, but are easier to qualify for.
Benefits of Solar Loans
Decresed Electric Bills: Solar electricity systems can greatly reduce your avarage monthly energy bill.
Added value to property.
Environmental Benefits : Solar energy is a clean and renewable source of energy that reduces greenhouse gas emissions.
→Tax Incentives: A lot of governments grant tax credits and other incentives for adopting solar energy
What To Look Out For When Selecting A Solar Loan
Interest rate:** A lower interest rate means more cash in your pocket over the life of the loan.
Loan Term — Shorter terms mean bigger monthly installments and smaller overall interest payments.