Financing your Solar Panel System with Solar Loans


Solar Loans If you prefer not to spend the upfront money
to install your solar panel system, solar loans are a great option for you. They allow
you to finance the entire cost of your system. With a loan, you’ll own your system and
you’ll be entitled to all rebates, tax credits and other incentives. These benefits allow
you to maximize the return on your investment in solar. There are two types of solar loans, secured
and unsecured. With both types, there are $0 down options so you won’t have to put
any money down. Regardless of whether you use a secured or
unsecured loan, your monthly loan payments are likely to be less than your current electric
bill, so you will start saving money right away without any incurring any upfront costs.
And, over time, as electricity prices continue to rise, your savings will continue to grow. the most common form of secured loans are
home equity loans or home equity lines of credit, sometimes referred to as a second
mortgage. With this type of loan, you borrow against the equity you’ve built in your
home. Your home serves as collateral. These loans have favorable terms and the lowest
interest rates. Additionally, the interest on the loan is tax deductible. But, if for
some reason you were to default on the loan, the bank has the option to foreclose on your
home. A second, very similar type of loan is an
FHA Title 1 secured loan. FHA Title 1 loans are guaranteed by the government. You would
still use your home as collateral, These loans have favorable terms and low interest rates.
If you default on the loan, the lender will have a lien against your home so that the
loan will be paid when or if you sell your house. Your other option is an unsecured loan. These
loans do not require any collateral. This makes them riskier for the lender, and that
risk is reflected in the higher interest rate. These loans are similar to other personal
loans or credit cards. Interest on these loans is not tax deductible. Also, if you were to
default on an unsecured loan, your credit score would be impacted. Applying for a secured loan is a little more
involved and takes slightly longer than an unsecured loan. Your bank may need the extra
time to appraise the value of your home, since it will serve as collateral. Secured loans
generally have lower interest rates because they are less risky. Lower interest rates
translate to lower monthly payments and, you’ll also be able to deduct the interest from a
secured loan from your taxable income. Interest on unsecured loans is not tax deductible Now that you understand your options, you’ll
need to choose the one that’s best for you. The EnergySage Marketplace is an excellent
starting point. The Marketplace will help you get quotes from
multiple pre-screened solar installers and financial companies. It will also provide
you with apples-to-apples comparisons of the financial benefits associated with purchasing
the system and financing it with solar loans, solar leases or PPAs. The Marketplace makes
it easy for you to evaluate each option and choose the one that will best meet your needs
and financial objectives. For more information about this and other
topics such as the types of available solar loans, leases and PPAs, how to compare them
or to start shopping, visit the solar section of www.energysage.com.

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4 thoughts on “Financing your Solar Panel System with Solar Loans

  1. Hey there! Have you thought about – Maxim Earth 4 Energy (just google it)? Ive heard some great things about it and my brother got great results with it.

  2. The current tax law disqualifies home equity loans from being tax deductible. That incentive is only reserved for first mortgages up to $750,000.

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