2018 is fast approaching and with the New Year comes a long list of resolutions. We resolve to save money, get organized, get healthy and we also revisit plans for long term investments. If you’re a homeowner, then you know how valuable your home equity is for future financial planning and you have likely spent a considerable amount of time researching how to increase the value of your home for the long term. If your research has included the addition of Solar Power as a means to save on monthly utilities while adding to the value of your property, but you feel like it’s an option that is out of your budget, then we have some solutions for you.
- Solar Loans – Did you know that for most homeowners, the loan payment on a solar system with $0 downpayment is less than their average electric bill? Solar-specific lenders such as Sungage, Dividend, Spruce, and others, allow homeowners to buy their system with $0 out of pocket and make payments on a monthly basis in a structure similar to a solar lease, but you own the system, collect the federal tax credit, and you can even pay off the system early with no prepayment penalties! Many solar loans even give the customer the option to leverage the federal tax credit as a “delayed downpayment” so your monthly loan payment is based on ~70% of the system price instead of 100%, typically giving you a year or so to collect the federal tax credit and roll it back into the loan. This allows greater savings from day one and still means $0 down to get started. Solar loans offer greater flexibility, value, and lower cost of ownership compared to a solar lease, and so long as you have the tax liability to redeem the federal tax credit, a solar loan typically has better economics. Terms typically range from 5-20 years.
- PPAs – Solar Purchase Power Agreements allow homeowners to get the Solar Power they desire with little to no money down. You start saving from day one. You simply pay the Solar company (who owns the solar system) for electricity, which is often less than you are paying for electricity currently. The Solar company owns the equipment, and also takes care of installation, maintenance and repairs.
- Low Payback Period – If you choose to pay in cash, the payback period in many cases is less than ten years. Pair that with the increase to your property value, lowering your carbon footprint and creating your own energy independence from the ever-increasing cost of foreign energy, solar is a step in the right direction.
- Performance – The typical warranty on Solar Panels is 20 – 25 years, with guaranteed performance of 80% after 25 years. Your investment will be well in tact and producing a good amount of electricity 30-40 years down the line.
So, if your main concern when researching Solar solutions for your home is cost, know that there are options. The investment you make in Solar for your home will free you from the confines of your utility company, increases your property value and will also come with a substantial warranty so you can rest easy knowing that your investment is safe and secure.