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Decision-Making Process for Purchasing Solar

Adrienne SorensenOctober 4, 20184280

Decision-Making Process for Purchasing Solar

Although the solar industry provide some savings on your energy costs, low-rates on solar installations, and environmentally options for energy use, we experience a sense of uncertainty from the sheer volume of information and frequency of contacts.

 

It's times like these we wish to take these decisions into our own hands. We share insight on the best methods to purchase for your panels. HahaSmart recommends that you apply your reasoning skills to navigate your options with helpful information. Purchasing panels can take time and financial investment.

 

However, some decisions are smarter than others. Buying solar panels requires investment and more decision-making than leasing, but looking over the long-term, taking the long-game, the benefits of owning your system are unmeasurable.


Purchasing Power

Purchasing your solar electric system as an entire system with cash is the best method to achieve the best value for your purchase. Costs range from $15,000 to $20,000 after tax credits. Another massive incentive is that purchasing solar can decrease your electricity charge by 70 to 100 percent.

 

Of course, many variables may alter this price depending on the size and orientation and slope of your roof, and local regulations and policies. However, a majority of systems pay for themselves on average within five to seven years. It's clear that this is an excellent model for overall savings, and there will be no extra interest prices for your purchase.

 

In the meantime, we are sure you are wondering how else you might pay for a low-cost solar system without having a liquid cash supply under the mattress. We will describe various ways to finance your new solar dreams. If you need to bankroll your panel purchase, perhaps the most cost-effective means of doing so is to utilize a home equity loan or a home equity line of credit.

 

In these types of loans, your house serves as collateral, and typically these selections have low-interest charges (currently about 3 to 5 percent annually). There are some tax-deductible incentives for us to pay attention! The interest rate you end up paying is tax deductible. Home equity loans typically range from 5 to 20 years and you can usually sign up to have fixed interest rates.

 

Equity lines of credit, however, last on average ten years and have variable rates. Paying attention to this variable interest rate is crucial, as it can cause it to grow as time passes. If you don't own a home, or have the ability to obtain equity types of loans, and you don't have mountains of cash on hand, fear not, there are still options.


Understanding Solar Loans

There are unsecured and secured solar loans provided from companies and solar institutions. When taking on an unsecured loan, your house won't act as the collateral point. Also, and unfortunately, the interest isn’t tax deductible.

But, you can still make up for the costs down the road with your overall energy savings.

 

Numerous solar installers work with banks that extend solar loans; however, you can most often find better rates by directly working with credit unions and banks. Something we should be looking out for is for high origination fees. When exploring all choices for unsecured or secured personal solar loans, leave no stone unturned.

 

Fannie Mae also grants consumers financing for system purchases and installs by its HomeStyle Energy Mortgage Program when individuals purchase a new house or refinance. Buying solar panels can take time and financial investment. However, some decisions are smarter than others.

 

Purchasing solar panels requires investment and more decision-making than leasing, but looking over the long-term, taking the long-game, the benefits of owning your system are unmeasurable.

 

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