So, you decided that you want to convert to solar power, but don’t have the cash on hand to pay the upfront costs. The good news is that there are a number of options available to finance the solar installation costs. While solar power systems can be purchased or leased, this article is focused on how homeowners are able to finance the purchase of their Renewable Solar Resources residential solar panel system installation. Purchasing offers the best payback, or return on investment and purchasing your system delivers access to federal, state and local incentives or rewards for purchasing your own solar system.
Because solar conversion system installations are considered a home improvement, qualifying homeowners can refinance their home mortgage in a home improvement refinance loan that allows the homeowner to take enough cash out of the home’s equity to cover the cost of installation. This financing option is popular to many homeowners because the interest rate is fairly low, as first mortgage rates tend to be, and there is still only the one mortgage payment to pay monthly.
Loans specific to solar installations are available to cover the cost of installation. Some solar installation loans offer to finance one hundred percent of your solar installation costs. it may be a personal loan, but most are fixed rate home equity loans for the specific purpose of improving your home through conversion to solar power by installation of a residential solar panel system. Credit unions in Minnesota offer discounted rates to residents who are financing installation of a solar panel system.
Another financing option is a H.E.L.O.C. or home equity line of credit. A H.E.L.O.C. is an additional mortgage lien on your property with another monthly payment due. It will still give the homeowner the use of equity from their home, but you only pay interest on the amount you use. Once you pay down the balance on this credit, it may remain open to use for other home improvements, depending on the financial terms. It is still fairly reasonable interest rate, but the interest rate may be adjustable, so it can change.
No matter how you decide to finance your solar panel system, experts agree that by purchasing your solar panel system, you will save money on energy because you locked in your rate. While the retail price of electricity continues to rise, you are generating your own from a low maintenance system on your own property. The solar panels are long lasting which means you will be able to recoup your expenses to install them. If you sell your home, the value may be higher. Solar Panels are a plus to more homebuyers today, according to money.com raising your home’s value by an average of 4.1 percent across the United States. Zillow.com analyzed the phenomenon and reports a boost of $9,274 on a home sale of $226,300.
The best way to analyze the cost, the financing, the credits and the feasibility in Minnesota, is to contact Renewable Solar Resources and schedule your free consultation to determine the best options for your home and your family.