Are you passionate about the environment? Do you yearn to make your home even greener, utilizing renewable sources of energy to not only lower your energy bill but also reduce your carbon footprint?
If so, then you need to consider installing solar panels in your home. With solar panels, you can generate your own electricity without having to rely on power plants in your area.
However, one thing that you may have found in your solar installation research is the prohibitive expense of solar installation that inhibits many a homeowner from installing solar panels. Solar loans, however, are here to help remove that obstacle that stands between you and a greener home — which is why it’s so important to understand how solar financing options work so that you can realize your dream of building a solar panel layout for your house.
Benefits of a Solar Installation
Before looking at the details of a loan for solar installation, let’s first take a look at the benefits of solar installation so that you’re able to perform an educated cost-benefit analysis on this home improvement decision.
The most obvious benefit of a solar installation is the fact that you will be able to generate power for your home. This will reduce your electric bill, giving you a tangible return on investment (ROI), but also reduce your carbon footprint, which can be just as satisfying if you try to live an environmentally-friendly lifestyle.
Another significant benefit of installing solar panels, however, is the solar tax credit. This allows many individuals who install solar panels in their home to recoup some of the cost of their installation through a nifty tax credit.
How Solar Loans Work
There are two ways that solar loans typically work. The first can be thought of more as a solar lease program than a true loan. With this solar financing method, a company installs the solar panel system in your home for free. However, you don’t own it. You are free to use the electricity it generates, but you pay a fee for the usage of the system. This fee may go towards equity in the system so that you can one day own it or it may not check with your provider of choice to see what their terms are.
The other way a solar loan works is the same way as any other loan. Loan companies such like Loanpal front the money for the installation — thereby allowing you to take advantage of that aforementioned tax credit — and then you pay it off over a set period of time. For many people, the interest rates may be too high, but for those who want solar power, the expense could well be worth it.
Will You Use a Solar Loan?
Now that you know the benefits of solar power and how solar loans work, you should be much better equipped to make a decision as to whether or not you will use a solar loan to get renewable energy powering your home.
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