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Writer's pictureifeoluwa Daniel

A Solar Checklist: Financing Steps for Homeowners

Updated: Jul 12, 2023


A Solar Checklist

With each passing day, the sun showers us with abundant, clean, and free energy. The question then is, why not use this abundance for our own good? I mean, we could power our home with it and it's all going to be free of charge. Although this only starts to manifest in the long haul, it is worth every bit. To a lot of people, the only hiccup is the financing part.


In this article, we'll navigate the sometimes-confusing world of solar financing. We'll dive into the questions you need to ask yourself before embarking on a solar project... Is your roof suitable for solar? Can you really afford it? Is going solar even worth it?


We'll then explore the myriad options available for financing solar panels – from using credit cards to taking out loans and even capitalizing on government incentives. To buy or to lease, that is the question we'll tackle. And finally, we'll guide you through the process of finding the best solar panel installation price.


What Questions Should You Ask Before Financing a Solar Project?

Before you dive headfirst into the world of solar energy, it's essential to take a step back and ask yourself a few vital questions. Like any significant decision, it pays to do your homework first...


Is My Roof Okay For Solar Panels?

First things first, let's look up... at your roof, that is! Not all roofs are made equal when it comes to solar panel installation. You'll want to consider its direction—south-facing roofs tend to get the most sun in the U.S. How about the angle? A tilt between 15 to 40 degrees is usually ideal. But don't fret if your roof doesn't fit the bill; solar panel mounts can adjust to make the most out of your situation.


Don't forget to assess the condition of your roof. If it's nearing the end of its life, it might be wise to get a replacement before adding solar panels. Remember, they’re a long-term investment, and you wouldn't want to remove them for roof repairs later. Consider any shading from trees or neighboring buildings that might interfere with your solar production. And finally, does your roof have enough space to house the number of panels you'd need for your energy goals?


Can I Even Afford Solar?

The cost of solar installation might seem steep initially, but let's unpack it. Solar panel prices have been plummeting, and there are various financing options available to make it affordable for homeowners. But remember, the cost of solar panels isn't just about the upfront price. You should also consider the long-term savings. Solar power reduces your energy bills, and in some cases, you can even sell surplus energy back to the grid!


Is Going Solar Worth It?

Beyond the dollars and cents, going solar has a host of benefits. Think about the environmental impact—solar power is clean, renewable, and helps reduce your carbon footprint. Then there's energy independence; no more being at the mercy of utility companies and fluctuating energy prices. Plus, solar panels can increase your property value. So, if you're considering selling your home in the future, this could provide a significant financial boost!


Yes, solar power is an investment, but it's one with potential returns both financially and environmentally. And the value it brings over time in terms of savings and benefits can make it more than worth it.

Options for Financing Solar Panels

So, you've done your homework and decided to embrace solar energy. But how do you plan to pay for it? Well, there are numerous options available for you to finance this sunny endeavor, let’s check them out.


Credit Cards

Can you imagine swiping your credit card for solar panels? It might seem a bit outlandish, but yes, credit cards are indeed an option. If you have a substantial credit line and a card with rewards or cash back, you could end up benefiting from this. However, this option isn't for everyone. The key here is to ensure that you can pay back the cost promptly to avoid the interest piling up. And always remember, credit cards should be used wisely and responsibly.


Loans

If credit cards aren't your cup of tea, you might want to consider loans. There are various loans available for financing solar panels, from private loans to federal housing loans. A good credit score and financial history can make you eligible for these loans. The trick here is to balance the numbers and ensure that the cost of the loan won't outweigh the benefits. And don't forget, the increased value of your home post-solar installation might just make the loan worth it!


Government Incentives

Did you know that the government wants you to go solar as much as you do? There are numerous federal and state-level incentives designed to make solar installation more affordable for homeowners. These incentives can range from tax credits to performance-based incentives, depending on where you live. But how do you get these incentives? Start by researching online, checking your state's energy office, or reaching out to us. We're always here to help you navigate this solar journey!


Factors to Consider Before Financing

You are ready to make the switch but one question remains: what's the best solar panel financing option for you? Well, just like everything else in life, it depends. Here are some factors to consider:


Credit score: A higher credit score can open the door to better financing options and lower interest rates. So, where does your credit score stand?


Financial situation: Assess your current financial situation. Can you afford an upfront payment, or would a loan suit you better?


Available incentives: Don't forget about those government incentives we talked about earlier. The more incentives you're eligible for, the more affordable solar becomes.


Interest rates: If you're considering a loan, pay attention to the interest rates. The lower the rate, the less you'll pay over time.


To navigate these considerations, it's worthwhile to consult with financial advisers and solar professionals. They can provide tailored advice based on your personal financial situation and needs.


Lease or Buy?

As you gear up to embrace solar energy, you're faced with a decision - should you lease or buy solar panels? While leasing might seem tempting with its low upfront costs, buying often proves to be a more advantageous path. When you buy, you're investing in an asset that enhances your property's value and lets you reap the full benefits of government incentives. Plus, you have the liberty to sell excess energy back to the grid - that's money back in your pocket!


In contrast, leasing might save you some initial cost, but it's like renting a house - you're simply paying for usage, not building an asset. So, if you're in it for the long haul, buying your solar panels is a smart move! Remember, you're not just purchasing panels, but securing a sustainable, cost-effective future.


Leasing

Pros:

- No upfront costs

- No responsibility for upkeep and maintenance

- Lower cost of energy


Cons:

- You don't own the panels

- No access to incentives and rebates

- You're locked into a contract with the leasing company


Buying

Pros:

- You own the panels

- You can take advantage of incentives and rebates

- Increases the value of your home


Cons:

- Higher upfront cost

- You're responsible for maintenance

- It requires a larger initial investment


Remember, the best choice depends on your personal situation. Take the time to weigh these pros and cons, and don't hesitate to seek professional advice.


How to Find the Best Solar Panel Installation Price


A man installing solar panels

You're all set to go solar, but how do you ensure you're getting the best deal? Let's break it down…


Key factors that affect the price include the size of your home, the type of panels, and the complexity of the installation. But beyond that, finding the best price is about smart shopping. Here's how:

  • Get multiple quotes: Don't settle for the first quote you get. Gather at least three quotes to ensure you're getting a fair price.

  • Be wary of outliers: If a quote is significantly higher or lower than the rest, it should raise a red flag.

  • Check the details: Make sure the quote includes all costs — equipment, installation, permits, and any necessary maintenance.

Remember, price isn't everything. Choosing an experienced, reliable, and knowledgeable contractor is crucial. They'll not only do the job right, but they'll also be there for you down the line should any issues arise. You can kickstart your findings by getting an instant quote from IntegrateSun.


FAQ

What is the average cost of installing solar panels?

The average cost of installing solar panels ranges from $15,000 to $25,000, depending on the size of the system and your location.

Can solar panels increase the value of my home?

What are the different types of loans available for solar financing?


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