Solar Financing: Shouldering the Cost of Going Solar

You have already settled to switch to solar power. The only problem is remaining is how you will cover the cost of buying the units and installing them. But, you do not have to rack your mind over that. There are several ways of getting financing for solar panels, especially, in Utah. Ideally, this will depend on your location, credit rating, your income tax levels and the length of time that the system will be valuable to you. Whichever financing option you may choose will come with its share of merits and demerits.

More on Solar Financing

Solar power leasing has been the most common way of obtaining solar panels. The most typical options here are direct and third-party ownership.

Direct Ownership

If you have saved enough to pay for your solar power system in cash, good for you. Paying for the solar panels upfront gives you the best returns on the investment as well as major savings. It is an interest-free way of acquiring solar panels without going through third parties for financing.

Third Party Ownership

In instances where you do not have enough cash to purchase the solar system, you can request for a loan from any of the financing agents available. Such companies are quite a number, thus making the field pretty much competitive. The loans are therefore affordable, and the repayment plans are flexible. To get a loan, all that you will need to have is your credit report checked. If you have a score of over 640, you automatically qualify for the loan. You will also need to provide other necessary documents like the system design to assist in determining your loan size, an approval form from the loan provider and the application for the loan.

house with solar panelsBut, Is Solar Power Right for You?

Having solar panels translates into a lifetime of energy saving. Whether you are buying them in cash or getting a loan to acquire one, that is much better than having to rent one. For one, owning a solar panel can raise your home’s resell value. With the understanding that the solar panels will guarantee free energy for many years, the solar panel value is inclusive in the home price. Even with the solar panels obtained on loans, it is still possible to sell the home to repay the loan. Either the incoming tenant or you, with the proceeds from the sale, will cover the solar financing.

Being a solar power system owner in Utah also makes you eligible for tax credits for solar power investors. But, this is for those who have bought the solar power system in cash or on loan, and whose income taxes are higher than 30 percent of the cost of the system.

Conclusion

Ensure that you have a warranty protecting your solar panels from any unforeseeable damages. Well, this is the responsibility of the installer. The manufacturer or the home insurer could also cover for damages to the solar power system. But, it is best if you can follow up on the same. If none of these covers the system damage, you will have to cater for the repairs and any other maintenance costs.

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