Cost of Solar & Financing Options
When evaluating a solar system for your home, the cost of the solar energy system is one of the most important factors in your decision. Second is how to pay for this investment, whether it’s financing the solar panel costs, paying cash for it, or leasing the system.
Cost of Solar & Financing Options
When evaluating a solar system for your home, the cost of the solar energy system is one of the most important factors in your decision. Second is how to pay for this investment, whether it’s financing the solar panel costs, paying cash for it, or leasing the system.
Cost of Solar Energy Systems
How to pay for solar: Lease, Finance, or Pay Cash
Leasing a Solar Energy System
First, we believe owning your energy production is the way to go, so we generally don’t recommend leasing a solar energy system. Leasing a solar system is not much different than renting your energy from the electric utility, you’re just paying that expense to a different company.
By owning your own energy production system, you are increasing the value of the investment in your home.
Financing the Cost of Solar Energy Systems
We find that most of our homeowners finance the cost of their solar installation. In many cases, the monthly cost of the loan is close to the average amount they were paying the electric utility for their monthly electric consumption. One benefit of the loan is having a predictable monthly expense as opposed to the seasonal fluctuations in most utility bills. Of course the major benefit is that instead of this being a pure expense going to the utility company, this payment goes directly into the equity of your home while reducing or entirely eliminating that monthly electric bill.
Energy Unleashed has partnered with 3 different financial institutions with unique programs for financing your new solar installation. Terms range from 5 to 30 years and currently offer programs from 0.99% to 6.99% rates which can include $0 down.
Paying Cash for your Solar Energy System
One way to pay the lowest amount for your own solar energy production system is to pay cash, thereby avoiding any finance charges. If this is an option for you, it’s a great way to own your energy.
What is the payback period for solar?
This is dependent on several factors:
Your payback period can be approximated by taking the cost of the system less the equity growth of your home, and dividing that by your avoided annual electric cost. Realistically, the cost you would be paying the utility company will increase over time, and that payback period would decrease.
The great thing about solar is that once the system is paid off, you are unleashed from your electric utility bill for the rest of the life of the system. We would be happy to walk you through your specific scenario based on your needs and your typical energy consumption.
What if I sell my house before the loan is paid off?
This is one of the most frequently asked questions, and the answer is simple. The most common scenario is that the seller would pay the system off with the net proceeds from the sale of the house. And given that solar systems typically add value to the home in excess of the cost, you still would come out ahead!
Next Steps
The next best thing to do is sit down with one of our solar consultants to determine if owning your own solar generation system is right for you. We know that Solar isn’t the right fit for everyone or for every home, and we will help you through this evaluation. Our commitment to you is to provide you with an objective assessment of your needs and your options.
Please call 719.828.4862 today to schedule your appointment.