What is the Right Solar Power Financing Option
Solar power can save homeowners thousands of dollars per year in electricity costs and over time, can actually make homeowners money from the accumulation of solar power and the eventual sale back to the electric company. However, homeowners are aware that the upfront costs of a solar installation can be hefty in the beginning. That’s why many homeowners are opting for financing their solar power installation. Finding the right option for each homeowner can be difficult. However, we’re laying out the variety of financing options available to homeowners now that will result in larger savings later.
Home Equity Line of Credit (HELOC) Solar Power Financing
When you own your own home, you have a line of equity available to you. After all, the reason you own versus rent is to build equity for your future. In order to make big purchases, many homeowners at one point or another, often take out a loan against the value of their home. What this means is that the bank is betting on the fact that you’ll pay your loan back or they’ll have a piece of real property to take to satisfy the loan.
By using your home as collateral, homeowners are able to gain access to the full amount in order to pay for a solar power installation upfront. The good news is this investment actually increases the value of your home. Payments to the bank to repay this loan are much less per month than other kinds of loans and allow homeowners to own their solar power installation from day 1- you’re an instant home solar owner.
Home Energy Renovation Option (HERO) Home Loan
A HERO home loan can offer homeowners seeking to upgrade to a solar power installation the ability to fund energy upgrades to their homes. HERO contractors are highly regulated and can offer repayment through homeowners’ property taxes. Rather than applying with your credit score, people are approved via the value of their home equity. Typically, homeowners choose a rate based on the number of years that they’ll need to pay the loan back and the rate is added to their tax bill. This is popular because it’s one annual payment. As a result, homeowners with solar power systems often experience immediate gains as a result of falling electricity rates and rising abilities to make money off of their solar power system.
Upfront Cash Payment
By paying in cash upfront, homeowners are able to realize benefits of solar power immediately. While this can be difficult for some homeowners, it can also be a smart investment in order to realize immediate benefits. This means homeowners are able to own their solar system on day 1. These homeowners are also able to gain the lowest price on a new system and be eligible for immediate tax benefits. This kind of improvement to a home also offers an increase in a home’s value. These can be attractive options to pay in cash upfront instead of delaying the costs via a loan.
Whatever your financial situation, homeowners are able to realize the benefits of a new solar power system. This means that whether they take out a loan or pay in cash, a new solar system can be instantly valuable. To find out more about your options, call the experts at Sunpro Solar at (951) 678-7733.