With increasing awareness about green living’s environmental benefits, the purchase of solar panels has gone up worldwide. The long-term benefits of installing solar panels are undeniable- not only can they bring down electricity costs, but they can bring down global temperatures and reduce carbon footprints as well. It is a useful tool in the combat against global warming.
Nevertheless, many users are hesitant about installing solar panels despite being aware of their benefits. One of the primary reasons behind this is the initial investment that one has to make while installing solar panels. Expert sites like Sun Badger Solar: solar financing can help you with more details on this. However, thanks to solar panel financing options, going green is not as economically taxing as it might look.
If you are thinking of getting solar financing for installing solar panels, here are some of the questions you should ask.
Is the Solar Panel Loan Going To Be a Secured or Unsecured One?
Loans are of two kinds- for a secured loan, you have to provide security or collateral foreclosed by the bank when you cannot repay the loan due to some contingency. There are no such requirements for unsecured loans. Ask your financer will you have to provide collateral if you get a loan for solar panels.
How Much Would You Have To Pay as Monthly Installments?
The EMI amount you pay each month will depend on the amount you will borrow, the loan tenure, and the interest rate. If you can pay a lump sum as your down payment, it would reduce your principal loan amount. If you take a loan for a longer tenure, that would also bring down your EMIs. However, you would have to pay more in terms of interest in the long run. If the tenure is shorter, you will pay higher EMIs, but you will get over the debt faster. Consequently, you will be able to start calculating how soon you will reap the benefits of the ROI after installing solar panels.
Are You Eligible To Receive Tax Credits From the Government?
Depending on your vocation and income, you could be eligible to receive the solar tax credit provided by the government. Some states also offer incentives to users who want to embrace green living. Your financer will be able to point out how you can apply for the credits, and it will reduce the amount you have to pay from your pocket. You can also get in touch with some government institutions which offer solar financing for home and office use.
Can You Get Loans Through Utility Service Providers?
You can ask your utility service providers whether they can finance the solar panel systems and if you can repay them through your electricity bills. Some utility service providers offer such finance schemes not to lose their clients if they think of converting to solar energy. You might have to pay more initially, but once you have repaid the installation charges, the costs will go down drastically in electricity bills.
Will Solar Panel Manufacturers Provide You With Financing?
Since the manufacturers are well aware of the costs of installing solar panels, they offer loans themselves while installing the panels. You can hire their services, and after a small down payment, you could pay the balance through installments. This is one of the best ways of seeking financing for your solar panel installation. In addition to purchasing solar panels, there are also options for leases. If you are unsure whether you will stay long term on a property, then it might be a good idea to lease them rather than buy them. With Sun Badger Solar: solar financing opportunities, you will come across attractive schemes no matter what your requirements are.