Solar residential systems can be a great alternative to traditional power sources for a number of reasons. Not only do they operate without producing any pollution, but they also allow you to break free from overbearing utility companies and drastically lower monthly bills. Unfortunately, despite the fact that solar power itself is free, installing solar panels for your house can be quite costly. As a result, many homeowners today believe that doing so is simply not a realistic option. However, there are multiple solar panel financing options available so that, hopefully, if you want to go green, you will be able to afford the decision.
Solar Leasing
Investing in a solar lease might be a good option if you know that you will not be able to pay for a complete solar power system. Essentially, a solar lease allows you to lease the panels and equipment from a company for a certain period of time, much like you would if you were in the market for a new car. A lease could last anywhere from a year or two all the way to a lifetime, depending on a number of different factors. Though it might not make sense at first, the combination of leasing and a significantly lowered monthly payment could actually prove to be cheaper than the utility bill alone, helping you save money every month.
Purchasing Agreements
A solar power purchasing agreement, or PPA, is similar to what the majority of homeowners currently have. To make a PPA work, homeowners will have a power system installed by a company and then pay them for the energy that it produces. It is one of the top solar panel financing options because the paid rate is fixed, and will not suddenly climb quickly over the length of the contract, and it allows homeowners to pay for clean power, rather than dirty coal-fired power from the electrical grid.
SRECs
In some states, utility companies are required to purchase renewable energy, often produced by home solar power systems, in order to receive Solar Renewable Energy Credits, or SRECs, to offset non-renewable energy production. By selling them directly on the market or using a broker will allow you to not only save money by switching to solar energy, but possibly even turn a profit.
Home Equity Loans
Because residential solar systems actually add value to your home, home equity loans are one of the most effective solar panel financing options. In fact, they are the most conventional means that people have traditionally used. Those loans add to the credit that you already have on your house, and could, in the long run, be the most affordable.
Switching to solar power and going green would be an easy task in the ideal world. Unfortunately, today’s planet is not perfect, and affording to switch to alternative energy. However, finding the right option can help you not only save money, but preserve the environment by bringing solar power to your home.