Early adopters of solar who used their hard earned money on a new unproven technology have allowed for the maturation of the solar marketplace. If you wanted to make a real statement and go green as few as 10 years ago most lending institutions who saw solar as a risk would most likely deny having anything to do with solar leaving you to pay 100% down. However throughout the years as more American homes and businesses have been fitted for solar, many questions concerning the viability of solar as the best form of alternative energy have been put to bed. Solar financing is now playing a major part for the recent surge of interest because it has allowed more people than ever the ability to benefit from solar by lessening the burden of having all of the money upfront.
Watching how banks and lending institutions have adapted to solar in the last 5 years has shown how much more comfortable they are with their clients showing interest in the market. In fact, according to a 2019 study by Zillow showed, adding a solar array to a home can increase the value of your home by up to 4.1% or over $9,000 dollars in value. Today there has been a major increase in availability to obtain safe and secure loans due to this new trend which has allowed people looking for solar financing to experience a much easier path towards going green.
One of the best ways to invest in solar with little or no money down is by using a home equity line of credit (HELOC). These loans have been a popular way to finance renovations since the 1970’s and are now available for solar from most major banks. This type of loan is ideal because it gives a client the opportunity to reach out to the bank of their choice, and interest rates are at a near record low allowing more savings. Lending for solar has been embraced to the point that most large banks offer solar specific loans where there is little to nothing down, and also includes the return of a tax credit of 26% after year end taxes are filed.
Another attempt at keeping the market all inclusive has been a push by state legislatures to make sure larger utilities are keeping a percentage of their funds for assistance for lower income households. These funds are put off to the side to assist with the cost of installation and can go towards either qualified homeowners or landlords.
Now is the time for anyone interested in solar to take a new look at financing as a means to lessen the financial burden from having to pay for the entire system upfront. Weighing the cost savings of a solar array with the amount that you would have been paying to power your home from the utility in the first place is more clear than ever.. In many cases, the cost saved is significantly lower than the inevitable bill we have to pay to the utility. If a solar loan offers a lower cost per month than a utility bill it is a great way to put that money into something that will pay for itself in a matter of time!