Integrating solar power to your personal domicile as well as the office can help provide both environmental and fiscal benefits accordingly. For example, it can help in saving the massive amount of electricity bill you get every month.
And the investment can improve your overall property value to some extent as well.
Unfortunately, though, installing a solar panel somewhere isn’t cheap. And, the equipment or any additional technology needed for the same can be quite expensive as well.
Now, if you’re anything like me – a middle-class family head – the price tag will seem like an overwhelming factor to you. However, here’s the thing.
Like anything else, if you want, you can get some fiscal help before installing a solar panel in your house. Keep reading this article till the end to know more about it.
What Is Solar Financing?
As mentioned before, installing a solar panel can be quite a large investment for someone. So, it’s best to opt for a financing option available out there.
However, before you get too befuddled about it, let’s talk about something more fundamental at first. Something like – what solar financing actually is.
So, it’s a type of… well, loan – that can help you pay for your solar panel accordingly. It can help you pay for the panel and the other related equipment as a whole. And, once you get or use the money for buying a solar panel, you can pay it back in installations.
But why would you really go for it?
Well, think of it as something like buying a house.
In case you don’t have a lot of cash in your hand, you will have to take it from someone else to make the purchase, right? And, once you buy the residence, you can pay the money back.
The same goes for a solar panel.
All you need to do is complete the paperwork needed for the loan and provide it to a lender. And, once they approve it, you can get the required money instantly. It’s that easy.
So, How Do You Consider If It’s The Best Option For You?
The cost of a solar panel can fluctuate quite often as a whole. Hence, it’s always best to select the best financial option for your purpose. Here are some considerations that you may have to make while you are at it –
- Find out and analyse all of your budgetary limitations properly.
- Evaluate the overall cost saving that you can get by using a solar panel.
- Check the installation expense as per the usage of energy.
For example, if you don’t use too much power to light up your house, you can easily choose a much smaller and more affordable option.
In addition to the aforementioned, we’ll also ask you to assess the overall cost savings of solar energy usage in the long run. The better you plan it all, the easier it’d be for you to find or choose the best possible solar power finance.
Solar Financing Options
In essence, you can opt for three different solar financing options as a whole. Each of them is different from the others. So, it’s better to know about them as much as you can before making a decision. Hopefully, the following section can help you out in this aspect to some extent.
Option – 1: Cash-Based Financing.
If you want to get a maximum amount of savings from your purchase, opting for cash-based finance will be perfect for you. For example –
- It can help you prepay for almost 25 years of electric power.
- You will be protected from rising expenses and utility costs.
- There’s no need to pay a huge amount of interest or anything.
Cash-based financing can only be an ideal option for you when you have a lot of cash in your hands. Or else, we’ll ask you to look forward to the next option.
Option – 2: Loan-Based Financing.
Unlike the first one, this option is for someone who cannot pay a massive amount of money upfront. So, in this case, you’ll have to find a lender and borrow money from them. The most popular loans that can help you get some money to by a solar panel system are –
- In-house financing.
- Unsecured personal loan, and
- Lines of credit or home equity loan.
The in-house finance for solar panels can get a little tricky for people who don’t have enough money to pay the upfront cost. On the other hand, we wouldn’t really consider an unsecured personal loan to be perfect for your business.
However, a home equity loan can be a decent option if you have nothing to offer at the start. It can also help you avail of various tax benefits and discounts to save your money.
Option – 3: Lease-Based Financing.
If you want, you will also be able to lease solar panels whenever you want. Signing a power purchase or PPA will be the way to go in this aspect. Under the new ECO4, solar panel grants are available to households across the UK in 2023. Read the Warma UK guide to know how to qualify for a solar panel grant.
The lease can be taken from the company. And, if you are doing so, the company will retain the ownership of the panel until you pay off the money.
But, who should go for it, really?
- A house owner who’s partially or completely credit-challenged.
- An owner who does not want to invest in the upkeep of the system.
- Someone who cannot get or opt for a tax credit.
Finally, if you are more concerned about environmental stewardship than your cost savings, it’ll be best to go for lease-based financing.
Wrapping It All Up!
In all honesty, solar energy plays a massive role in protecting our environment.
Therefore, if you opt for it, it’ll be easier for you to contribute to environmental protection and decrease the risk of global warming as a whole.
Just ensure that you’re investing in the right organisation, and you’ll be fine. Please do some research on them, though. Or else you might get scammed somehow.
In any case, now, we’ll conclude our article. If you want to know more about this context, don’t forget to comment below. We’ll be waiting!
